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Junction secures deal to partner with Auto Trader for a further five years

Immediate release: 29 May 2009

Junction, the UK's leading affinity insurance provider and part of the BGL Group, has extended its Joint Business Framework (JBF) partnership with AutoTrader.co.uk, the UK's number one motoring website, for a further five years.

Auto Trader originally selected Junction in January 2007 to launch its own brand Auto Trader Insurance, with bespoke features tailor-made to suit the specific needs of its customers – including a 30-day mechanical breakdown warranty, ideal for those insuring a second-hand car.

The JBF business agreement began in 2007 and, following the success of the first two years of the partnership, has now been signed up to run until 2014. It means both Auto Trader and Junction will continue to contribute to marketing spend and initiatives for the insurance brand, as well as sharing in the resulting profits.

Under the JBF, Junction has also developed an Auto Trader-branded aggregator facility - Auto Trader Compare. Part of the extension to the JBF will include further enhancements to Auto Trader's offer on its aggregator facility to vastly increase the number of members on the panel thus maximising its customer growth potential.

Once upgraded, the new Auto Trader Compare site will be a fast, effective quote engine searching more than 400 insurance prices and returning competitive quotes in a matter of seconds. It will benefit from greater transparency on each motor quote, through at-a-glance product benefits and excess levels.

Auto Trader's Tom White, Head of Partnerships, said: "The team has already been successful in taking our consumer offering to a whole new level. We wanted to expand beyond classified advertising and capitalise on Auto Trader's strong brand to build a significant revenue stream from insurance. Our strapline is 'the world of cars made easy' and our insurance aggregator plans are part of delivering this world for consumers. Our commitment to extend the JBF for a further five years is testament to the high quality and professional service we receive from Junction. We are confident that their expertise and understanding of the marketplace will help us further broaden the stretch of our brand."

Peter Thompson, Managing Director of Junction, said: "Auto Trader is the market leading brand in the UK for people buying and selling their cars. We are delighted to welcome Auto Trader on board for a further five years and look forward to working even more closely with this massive brand to continue helping them to drive their growth even further in the future.

"We have the expertise and breadth of insurers on our panels to offer a broad range of solutions in personal lines which should enable Auto Trader to continue to maximise its huge potential, especially with the plans we have in line for its purpose-built aggregator."