Part of global banking group BNP Paribas, Cardif Pinnacle employs 650 staff in the UK and Ireland, and also provides a claims management service.

Both companies operate through affinity partners and car retailers through dealer warranty programmes.

Based in Reading with a workforce of 40 employees, Warranty Direct will continue to operate as a stand-alone business.

“Our ability to accelerate the expansion of our warranty business is significantly enhanced by this acquisition,” said Paul Glen, CEO of Cardif Pinnacle.

Duncan McClure Fisher, managing director of Warranty Direct, added: “I'm convinced that Cardif Pinnacle's dealer and underwriting knowledge will complement Warranty Direct's system and service capability.”