Highway Insurance Holdings Plc - Acquisition - 06.08.07

HIGHWAY – Acquisition
The Board of Highway Insurance Holdings Plc ("Highway") announced on 5 July that its broking subsidiary, Hero Insurance Services Limited ("Hero") has agreed to buy 32,000 private car policies from Local Broker, an insurance intermediary brand that is part of the Budget Group of companies for a consideration of £2m.  The consideration will be paid from Hero's own cash resources. A copy of the Press release is attached or is available below.

At the same time, Hero has appointed ACM ULR Limited, also part of the Budget Group, to provide its motor legal protection services.

Commenting on the arrangements, Paul Cosh, managing director of Hero, said:  "I am delighted with this deal as it represents another significant step in positioning Hero as a leading player in the personal lines distribution sector.  In addition it develops further Highway's relationship with the Budget Group, which is one of Highway Insurance Company Limited's largest distributors."