Pannone & Partners and Berrymans Lace Mawer have won highly-coveted places on the Automobile Association's (AA's) claimant panel – a contract that is likely to add millions to both firms' turnover and sees Berrymans launching a claimant department.

The two firms won out in a competitive tender against 10 other candidates and will now handle all of the personal injury, employment, litigation and clinical negligence work generated by AA members and policy holders.

The firms are expected to receive more than 4,000 instructions a year each, generating fees of more than £5m for each firm.

Manchester-based Pannones has acted in a limited capacity for the AA during the last year, having dealt with around 350 instructions annually, but Berrymans is understood to be new to the panel.

It is not known who else pitched for the work but firms that have previously advised the client include national litigation specialist Irwin Mitchell, Shoosmiths, Milton Keynes-based Fennemores and Amery-Parkes of Basingstoke and Birmingham.

The instruction is a departure for Berrymans, which specialises in defendant insurance work.
The national firm, which has been focused on rebuilding its practice for the last two years after a wave of departures in 1999 and 2000, is understood to have opened a small claimant department to deal with the work.

Earlier this year, Berrymans also sealed a takeover of northeast practice Jacksons Insurance Law to strengthen its position with key clients Norwich Union, Iron Trade and Axa.

Pannones, which is one of the fastest growing firms in Manchester, has this week released its half-year figures, showing a 20% increase in both profits and turnover on last year's figures. The firm has billed a total of £13.7m since the start of the financial year.

"We are more than pleased with the AA tender," said managing partner Joy Kingsley, "and the firm has seen turnover and profit increases across the board."