Legal expenses insurer becomes ABS
Abbey Protection Group could buy law firm to expand legal services
In the first move of its kind, an insurer has become an ABS in order to expand the legal services it provides.
Abbey Protection Group (APG) specialises in legal expenses insurance for SME firms under the brand Abbey Legal Protection. Its ABS licence will become effective on 1 January,
APG currently employs 60 solicitors and barristers to advise businesses through a 24-hour helpline, which handles up to 275,000 calls a year.
The insurer has a litigation team, but its activities are limited to defending clients at employment tribunals.
Chris Ward, group managing director, told Solicitors Journal this morning that APG's decision to become an ABS was part of a 'drive to expand legal services', which could include the purchase of a law firm.
'We're not a Co-op entering the market to take over the world,' he said. 'We have a particular niche and our interest will remain with SME firms.'
Ward said obtaining external capital was 'not an issue', as the plc which owns APG already has 'significant capital'.
David Hartley, currently director of after-the-event services, will be the firm's COLP. Hartley was formerly a senior policy adviser at the Law Society.
Adrian Green, APG's group finance director, will be the COFA.
Ward added that there would be a 'fully-blown launch' of APG's new strategy next year.
In its announcement this morning the firm said its ABS licence would enable APG to provide a wider range of legal services to its clients from 1 January 2013.
'As part of the process to secure the licence, APG Ltd will undergo a partial restructuring.
'On 1 January 2013, the trading divisions of Abbey Tax Protection and Accountax will be transferred from APG Ltd to a newly formed, wholly owned subsidiary of APG Ltd called Abbey Tax & Consultancy Services Ltd.'
Abbey Protection plc's turnover is currently around £35m. Abbey Legal Protection is based in Croydon.