Insurance arm stands out as Moneysupermarket posts record revenues

19th Feb 2024 07:44

(Sharecast News) - Moneysupermarket hailed record full-year revenues on Monday following a strong performance from its insurance business.

In the year to the end of December 2023, group revenue rose 11% to £432.1m, with earnings before interest, tax, depreciation and amortisation up 14% at £131.9m.

The jump in revenue came despite no material revenue from energy switching, led by "exceptional" trading in the insurance segment, it said. Revenue from insurance increased 28% to £220m.

Moneysupermarket said growth was underpinned by strong switching in car and home insurance, and it won market share in both products. It noted that car and home premium prices paid increased substantially as providers passed on rising costs of claims.

Premium prices paid in car insurance were up 35% to end of November, which showed signs of stabilising at the end of the year. Home premium inflation accelerated in the year, up 34% in the same period.

"The combination of high levels of premium price inflation and the cost-of-living squeeze resulted in high levels of search traffic with consumers seeking a better deal," it said.

The company lifted its full-year dividend by 3% to 12.1p a share.

Chief executive Peter Duffy said: "We helped customers save a record £2.7bn in 2023. The more we can help households save, the more the group grows.

"We're proud that in tough times for consumers, MoneySuperMarket, MoneySavingExpert and Quidco have been able to make a real difference for so many."

Looking ahead, Moneysupermarket said it doesn't expect any increase in energy switching revenue in 2024. In addition, comparatives in the insurance segment are expected to get tougher, particularly into the second half.

"However, our trading performance and momentum in our strategic execution, gives the board confidence that group EBITDA will be within the current market consensus range," it said.