The founders of an insurer that sells travel cover to over-55s are set to earn a fortune from the impending £30 million sale of their company.

Former insurance brokers Mike Rutherford and Chris Wacey founded AllClear Insurance Services in 2001 and own a majority of the shares.

The company operates in the UK, Ireland and Australia but insiders said that its new owner, the buyout firm Synova, may look to expand into other countries, according to the Sunday Times.

The company, based in Romford, Essex, specialises in providing affordable insurance to travellers who are over 55 and have serious medical conditions.

Last year it made a pre-tax profit of £286,000 after turnover rose by one third to £12.9 million.

The sale comes at a turbulent time in over-50s travel insurance, after Saga issued a profit warning in December for last year and the current year.

Rutherford and Wacey, both 69, are to remain as non-executive directors at AllClear after the takeover. They are expected to retain a small stake in the company.