SALE-based Principal Insurance has acquired the motorcycle book of Simply Insurance in a move which highlights further the business’s ambitious growth plans.

The deal is announced just days after the specialist insurance group confirmed its acquisition of a similar book from iGO4 Partners Ltd. It adds a further 500 policies to the 5,000 secured through the purchase of iGO4’s BikeTeam operation.

Both vendors chose to exit the motorcycle niche in order to concentrate on their core businesses, with Simply Insurance now set to focus on its successful fleet, courier, motor trade and commercial lines.

Principal’s chairman Damian Keeling said the new deals illustrated the group’s appetite for striking deals of all sizes as it continues to secure rapid growth. “We’re in the market for niche books which are non-core to general broking businesses, as was the case with Simply, as well as specialist brokers themselves,” he said.

“There are a lot of relatively small specialist books out there which might be underperforming or be draining executive time within wider businesses. These may be attractive to us but not considered substantial enough for purchase by larger nationally or internationally backed businesses. We also look to do quick and clean deals, not contingent on anything so as to minimise cost and complexity”

He added: “Whilst these latest deals are in the motorcycle sector, we’re looking to complement strong organic growth through acquisitions right across our portfolio.” He pointed out the group has already bolstered its specialist car operation through the acquisition last October of Marsh’s Kendal-based specialist motor insurance broking business.

The Marsh deal extended Principal’s footprint in a number of specialised motor niches, including the classic, kit, replica, high performance and high value car insurance.

Established by managing director Dave Bowcock, Manchester-headquartered Principal has secured impressive growth. Annual premium income, which stood at £1.2m in 2011-12 now stands at around £5m, with the business forecasting a further 60 percent growth in its current financial year.

Whilst acquisitions are now helping fuel growth, much of the group’s expansion has been secured organically and boosted through the launch of additional personal, motor trade and commercial lines. It also entered the Irish market with the opening of a Dublin office last April which, whilst initially solely offering motorcycle cover is now piloting home, car and van lines.