Shares in Quindell (LSE: QPP) fell by 4%, or 2p, to 42p during early trade this morning after the insurance outsourcer announced Zurich Canada has contracted to use regul8, a statistical reporting solution.
Zurich Canada, part of the Zurich Insurance Group, is required to meet extensive regulatory requirements, and the choice of regul8 was a “straightforward” decision. Zurich added “we are committed as an organization of ensuring the highest quality of statistical data reporting”.
Quindell’s regul8 represents $7.5bn in annual premiums in Canada, or 20% of the insurance market.
In addition, Quindell is working with other insurers to determine further benefits that regul8 can provide, such as early error detection and correction, as well as more streamlined reporting and cost-reductions.
Tim Scurry, the chief executive of Quindell Solutions Division, commented:
“Zurich Canada writes Commercial Property, Liability and Auto across all provinces and territories, while globally they deliver a complete range of general insurance and life insurance products. Our goal is to successfully deliver a superior regul8 solution, and then pursue other global efforts together.”
Shares in Quindell have doubled since the start of the year, and increased fourfold in the last two years.
The stock is among the most traded by value this morning — potentially because of short-term traders taking profits from gains after yesterday’s joint-venture announcement with the RAC.
Of course, day-to-day volatility isn’t an accurate reflection of the long-term prospects of a business. Whether or not now is the time to cash out, or it’s a good opportunity to buy more of what could turn out to be a great long-term investment, is entirely down to you.
