Specialist motor insurer XS Direct has raised €5m in funding from BMS Finance and as a result will return to the Irish motor insurance market next month.

The investment has enabled XS Direct to take a strategic stake in a newly-formed UK insurance platform, Eridge Underwriting, to allocate further resources to its data science and financial technology operations, and to restructure its capital base.

XS Direct targets customers who are willing to accept a high excess in return for lower premiums. Founded in 2004 by Chris McCann, the operation launched in the UK in 2009 and hopes to write approximately €100m worth of premiums in 2016. The company employs 55 people at its Dublin headquarters.

McCann said: “We are very excited with the BMS Finance investment in XS Direct Group and all that it facilitates. That BMS Finance is committed to supporting our business long term through this facility is further evidence of our successful business model and the capability of all our team.”

XS Direct operates exclusively in the UK market at present, but is expected to re-enter the Irish market from June.

In Association with

Shane Lanigan of BMS Finance commented: “ Financial services is one of our core industry sectors and we are pleased to have now completed transactions from our dedicated Irish fund in all of our three core sectors.”

BMS Finance provided the €5m through its BMS Finance Ireland fund, which is backed by a number of investors including the Ireland Strategic Investment Fund. Corporate finance firm FinRes advised XS Direct in relation to the investment.