Travel insurer Cover-More says it could increase US sales by $50 million by the end of next financial year as the company pursues expansion opportunities.

The North American operations are ramping up and results are in line with expectations, Cover-More says in an update to a Morgan Stanley conference.

The insurer last month said a US distribution deal with Flight Centre Travel Group will achieve sales of $30 million in the first year.

In addition, it has “good visibility” on US opportunities that could generate at least $50 million in extra revenue, and is continuing to build its management team in the region.

Carole Tokody, previously director of sales and e-commerce, has been appointed CEO North America and Canada.

The US Flight Centre distribution deal is in partnership with Aon Affinity Travel Practice.

Cover-More listed on the Australian Securities Exchange in 2014 and also operates in New Zealand, the UK, India, China and Malaysia.

It says it is making “good progress” in negotiations with Great Lakes Australia on a new underwriting arrangement, which should be in effect from next month, reducing volatility.