Quindell PLC (LON:QPP) (OTCMKTS:QUPPF)’s claim to have worked for over 1,000 brands has come under scrutiny, from some activist shorts, and now Insurance Times discovered that several insurance companies featured on its website no longer work with the professional services company. However, to Quindell’s credit, Insurance Times discovered that several insurers were pleased with their relationship with Quindell.
Client list under spotlight
In its Oct. 15, 2014 issue, Insurance Times highlights that despite the claims that it has worked for over 1,000 brands on Quindell PLC (LON:QPP) (OTCMKTS:QUPPF)’s investor relations page on its website, several of those companies, including Ageas, RSA and Towergate, told Insurance Times that they don’t currently work with the claims services provider.
For instance, Rob Smale, Ageas claims director, said that the insurer and its Kwik Fit brand were no longer a customer of Quindell after ending a long-standing claims handling relationship with Ai, one of the many companies that Quindell has bought in recent years. However, Quindell’s spokesman clarifies that Ageas remains on the panel of Ingenie, a telematics broker it owns.
RSA’s spokesman also clarified that though Quindell PLC (LON:QPP) (OTCMKTS:QUPPF) was a supplier to RSA, it has not been the case for a considerable period.
David Hudson, Buckland Harvester managing director, confirmed that the Manchester-based broker is a customer of Quindell’s legal expenses products, although this amounts to a couple of thousand pounds’ worth of premiums a year at most.
The Insurance Times report, however, points out that Quindell is a customer of Swiss insurer Zurich’s subsidiary Endsleigh.
Quindell’s satisfied client list
Insurance Times also listed a few satisfied clients of Quindell PLC (LON:QPP) (OTCMKTS:QUPPF) who were pleased with their relationship. For instance, A-Plan chief executive Carl Shuker confirms that Quindell had developed a claims management service in a niche area for them. He expressed satisfaction at Quindell’s professional approach.
The past few months have been disastrous for investors in Quindell. In April, Gotham City Research released a scathing report suggesting that Quindell’s reported profits are materially incorrect, its operations are exaggerated, and its shares are worth no more than 3p per share.
Despite posting monster first-half earnings, Quindell’s stock dropped by over 10%, essentially due to trust issues over the quality of the company’s earnings report. The following graph captures Quindell PLC (LON:QPP) (OTCMKTS:QUPPF)’s stock price movement after the allegation of “suspect” profits broke out.
As a respite from the recent developments, the insurance claims processor announced yesterday a five-year deal to provide in-car monitoring systems for a Canadian automobile insurer. Quindell PLC (LON:QPP) (OTCMKTS:QUPPF)’s stock rose Tuesday 15.6% to 162.50p at Monday’s close.