Anexo Group (ANX) has signed a major agreement with the UK-based broker MCE Insurance (‘MCE’) to offer post-accident claims services to all MCE’s non-fault insurance customers.
The agreement with MCE, which is for an initial three-year period, is expected to have a materially positive impact on Anexo’s revenues and to enhance earnings from FY22.
The specialist integrated credit hire and legal services provider told investors that the deal follows an agreement signed between MCE and the motor insurer Sabre Insurance Group which will see Sabre become the exclusive underwriter of MCE’s motorcycle policies.
The UK-based insurance broker MCE is independently owned and since its foundation in 1975, has grown to become one of the UK’s largest providers of motorcycle insurance.
Under the terms of the agreement, Anexo will assume responsibility for dealing with claims from customers of MCE who are victims of non-fault accidents. Replacement motorcycles will be provided through its credit hire division, DAMS, and customers will be supported in their legal claims against the at-fault insurer by its legal services division, Bond Turner, it noted.
‘Where appropriate, claims will include personal injury and damage to possessions and equipment as well as vehicle repair or replacement. Statistics show that motorcyclists are particularly vulnerable to personal injury as a result of non-fault accidents.’ Anexo noted.
Anexo said it expects the agreement with MCE to lead to a significant increase in both the number of vehicles on the road and the number of cases being handled by Bond Turner.
Alan Sellers, Executive Chairman of Anexo Group, said the agreement with MCE represents “a major contribution” to the company’s growth strategy as it works to expand its business.
He outlined: “We have a long track record of providing replacement vehicles and claims support to the motorcycle community and our motorcycle numbers have been growing, particularly due to the increasing volume of couriers on the road during the COVID pandemic.
He added, “The agreement provides a substantial source of new business in addition to the introductions we currently receive from our network of over 1100 introducer garages.”
Meanwhile, Anexo has appointed Brian Corrway to the Board as a Non-Executive Director. r Corrway, a Chartered Certified Accountant, was nominated by DBAY Advisors Limited.
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In September 2021, Anexo increased its debt facilities to receive an extra £16m in financing in order to enable the business to fund growth within its credit hire and legal services divisions.
The specialist integrated credit hire and legal services provider said the increase follows discussions with the Company’s two major lenders, Secure Trust Bank and HSBC Bank.
Funding under the deals will therefore increase from £18.5m to £25m, split between £17m as a Credit Hire facility, £6.5m as a Credit Repair facility and £1.5m to support growth in PALS.
Analysts said they expect momentum in the business and the acceleration of housing disrepair to underpin earnings and provide scope for upgrades as 2H21 progresses.
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