Kwik-Fit Insurance, the insurance broking arm of the tyre and exhaust chain, yesterday acquired Express Insurance Services of Birmingham for an undisclosed sum.

It is the first acquisition for Uddingston-based Kwik-Fit Insurance, since it was set up in 1995, and will give it access to several niche areas.

Express specialises in insurance for motorcycles, performance cars and non-standard risk drivers. The firm, which has an annual turnover of around £9m and employs more than 150 staff, also has a strong internet presence and also provides an affinity scheme for a leading motorcycle manufacturer.

Kwik-Fit Insurance has an annual turnover of around £50m. It employs about 850 staff at a call centre in Uddingston, Lanarkshire, and handles 10 million calls each year, selling "white-label" financial products. Although its underwriting panel includes many leading insurers, the majority of its customers are from Kwik-Fit's client base. The deal has created the potential capacity for up to 30 new jobs.

Managing director of Kwik-Fit Insurance, Martin Oliver (pictured) said: "We are delighted that Express is joining the Kwik-Fit Insurance family. It possesses a strong brand and, through its specialisms, is an excellent strategic fit for us. This, combined with its good use of the internet, will give us additional access to markets where we are currently under-represented as well as significantly increasing our footprint in the market."

Express director Peter Moroney added: "We are excited about becoming part of Kwik-Fit Insurance since this presents many opportunities for additional business growth which will be good for our customers, insurance company partners and staff alike."

In November last year, Kwik-Fit Insurance reported a third successive year of record profits, returning a pre-tax surplus of £4.9m for calendar 2005, nearly double the figure recorded for the previous 12 months.

The result capped an impressive four- year turnaround. In 2002, the division lost £4.2m, a result made worse by a £1.8m write-down on the value of a new insurance inquiry-handling system.