Resources In Insurance Group

Claims manager Resources In Insurance (RIIG) has made money in 2011's first quarter after cutting annual losses 20% to £404,000.

AIM-quoted RIIG, chaired by ubiquitous small company player John French, lifted turnover 40% to £2.1m in 2010 and is negotiating three big deals, which it expects might deliver a strong impact on second quarter results, if clinched successfully on time. Benefiting from the continuing outsourcing trend, the company, whose 16 corporate clients include six of the UK's largest insurance companies, uses knowledgeable and experienced sector players ousted from slimmed down major insurers and is contemplating branching out into two areas, such as training and consultancy.

With no debt, RIIG would not be adverse to taking over a company to enter new fields, though French insists it will not stray from claims handling and management. He notes once-troubled RIIG has received informal indications of interest, but would not consider accepting a bid until it has proved the hoped-for success of its recovery strategy, whose first step was disposing of its formerly key, but volatile, loss adjusting business.

The company has supplemented its 'i-team' claims management service with 'Verify', testing claims' validity, and 'Surety Claims', covering post-accident replacement vehicle credit hire. Serial investor Bob Morton's Guernsey-based Hawk Investment Holdings is a supportive investor in RIIG.

Floated at 8p 11 years ago, RIIG shares have traded between 0.28 and 1.08p over the past year and now change hands at 0.79p. They are worth a medium to long-term recovery punt.