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Falling insurance premiums fail to dent’s third-quarter revenues

Taking a cut of insurance policies bought through its site accounts for more than half of Moneysupermarket’s business
car crash
The price comparison site said it remains on track to meet market expectations this year

Price comparison firm Group PLC (LON:MONY) managed to eke out growth in its core insurance division in the second quarter despite a falling premiums cycle.

Insurance revenues, which account for more than half of group turnover, rose 2% in the three months ended September 30 to £48.7mln.

That is despite a well-publicised fall in car insurance premiums which have seen double-digit declines recently, fuelled by a crackdown on fraudulent whiplash claims.

READ: posts better-than-expected Q2 revenue

Coupled with growth in its money division, steady trading in its home services arm and the recent addition of Decision Technologies, core group revenues rose 2% to £85.1mln in the third quarter.

Over the nine months of the year so far, revenues are up 4% to £245.3mln.

“Trading continues on track as we reinvent the business to help our customers save more money,” said chief executive Mark Lewis.

“Decision Tech is now on board with its B2B comparison expertise. Energy switching in our Home Services business was better than expected with customers taking advantage of great 18-month fixed deals to beat rising prices.”

As for its outlook, Moneysupermarket told investors it remains on course to meet current market expectations.

Shares were down 1% to 261.3p early on Thursday.

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