AN insurance company founded more than a century ago by a group of fishermen is moving to a new headquarters after growing into an £80m-a-year business.

The little known North-East insurance company is now the world's leading insurer of the fishing industry.

Sunderland Marine Mutual Insurance (SMMI) has abandoned its low profile and announced details of a £5m move.

The 122-year-old company is leaving Sunderland's Esplanade for headquarters at Aykley Heads, just outside Durham City.

The company was founded in 1882 by fishing boat owners hoping to protect themselves and their families.

Today, the company has 12,000 members, trades in more than 50 countries and has an annual turnover of about £80m.

It provides cover for other types of working boats and comparatively recent innovations, such as fish farms.

SMMI, which employs 120 people worldwide, will move its 70 staff to Durham City next year in a move that it hopes will improve its efficiency and communications.

If the move proves successful, more staff may be taken on. Its existing properties have been sold to the Sunderland Housing Group, which bought the city council's housing stock, and will be converted into homes.

Having outgrown its base, the company looked around the region and considered Sunderland's Doxford Park, but ruled it out because of proposals for a new traffic management scheme, before settling on Durham.

Chief executive Geoffrey Parkinson said the board of directors was resolute in wanting to stay in the region, and viewed the chance of a purpose-built HQ at Aykley Heads as a sound investment that would also improve the company's service.

Aykley Heads, which may yet become the home of a North-East regional assembly, already supports about 500 jobs in organisations including the Probation Service, the North East Chamber of Commerce and Sport England.

The city is popular with the company's visitors and the board has been impressed by the help given by the local authorities.

Mark Lloyd, managing director of the County Durham Development Company, said he was delighted the insurer was moving in.

"We are confident that the new purpose-built headquarters in a superb location will bring it even more success."

The 3,300sq ft HQ will be built on the site of offices occupied by Sport England before it moved to another part of the business park.