The Royal Bank of Scotland-owned insurer is increasing its spend to capitalise on the popular appeal of its Churchill nodding dog brand icon. The character will be used in online activity and mobile phone picture messaging.
Churchill currently produces direct mail in-house, though it has used its advertising agency EBP to create mailings.
The search for a dedicated direct marketing agency is part of the brand's strategy to increase market share by improving the cross-selling of home and car insurance.
Marketing director Peter Corfield handled the review, with EHS understood to have beaten several agencies for the work.
Earlier this year Churchill threatened legal action against retailers selling imitations of its nodding dog. The insurer claims to have sold more than 20,000 official models in the past year.
A spokesman denied that a decision to hire EHS had been made.