Former Executive Chairman of Quindell (now Watchstone Group PLC), Rob Terry, has invested in a claims management joint venture, OS3 (incorporated in 2003), and is ‘targeting a £1bn+ initial valuation’ by 2022.[i] The annual business report for the recently re-branded company suggests that the Quindell business structure will be replicated, with all the founding directors having previously worked at the insurance software company.
In 2014, Mr Terry resigned from Quindell after a ‘controversial share sale and repurchase deal … destabilised the company’s share price’. Slater and Gordon subsequently bought Quindell’s Professional Services Division in 2015. However, this destructive deal is the subject of ongoing High Court litigation, while the criminal investigation into how Quindell’s ‘business and accounting practices’ turned an £83 million profit into a £68 million loss continues.
OS3 will operate with an already established claims management company (CMC) to ‘provide a cloud-based platform to digitally link various elements of the claims supply chain, improving both the efficiency and effectiveness of the claims process’; motor insurance claims have been identified as a key area of supply.
The business report states that the joint venture ‘will be used to target a segment of the UK claims market segment of the market is expected to remain extremely profitable and unaffected by current planned regulatory changes’.[ii]
[i] Nick Hilborne, ‘He’s back: Ex-Quindell chief Terry invests in claims manager’ (6 November 2018 Legal Futures) <https://www.legalfutures.co.uk/latest-news/hes-back-ex-quindell-chief-terry-invests-in-claims-manager> accessed 7 November 2018.
[ii] Terry Gangcuangco, ‘Ex-Quindell boss in new insurance venture’ (5 November 2018 Insurance Business) <https://www.insurancebusinessmag.com/uk/news/technology/exquindell-boss-in-new-insurance-venture-115417.aspx> accessed 7 November 2018.