This car insurer has pulled a U-turn and is back in the market
Dublin-based XS Direct, which previously left Ireland in 2014, has just raised €5 million.
AN IRISH INSURANCE company is re-entering the motor market in the Republic after securing funding to get the operation running.
Dublin-based XS Direct is a personal car insurance provider currently trading exclusively in the UK. It targets customers who are willing to accept a high excess in return for lower premiums.
The company currently employs 55 employees at its headquarters and expects to write approximately €100 million worth of premiums in 2016.
XS Direct said it left the Irish market in 2014 to “concentrate on its UK market growth strategy”.
Although it did not specify the reason for returning to Ireland, it noted that the Irish market has seen “significant premium growth over the past two years”.
Rising premiums
Car insurance premiums soared by a third in the year up to the end of March, which several industry figures have claimed is due to a mix of high compensation claims and a price correction after years of relatively low charges.
XS recently secured €5 million in debt finance from UK-based SME funding specialists BMS Finance, which recently launched a €30 million pool backed by the Irish Strategic Investment Fund.
BMS has invested about €10 million from the fund, which provides debt finance to “high-growth Irish SMEs”.
XS said that the money will be used to take a stake in a newly formed UK insurance platform called Eridge Underwriting.
Chris McCann, who founded the company in 2004, will remain as the largest shareholder in the group and continue as its chief executive.
He said that investment is evidence of the company’s “successful business model and the capability of all our team”.
