Scramble for best insurance deals delivers record revenues for Moneysupermarket
Exceptional trading in its insurance category led to record annual revenues for price comparison site, Moneysupermarket.com, it revealed today.
The insurance industry has seen a marked increase in policy prices, particularly in car insurance, leading to drivers scrambling to get the best deals they can.
Moneysupermarket’s annual figures for the year to December 31, 2023, showed improved figures, despite no material revenue from energy switching, the group said.
The business, based in Ewloe, near Chester, said the improved results were due to receipts from the insurance business, and also its efficient acquisition and retain and grow strategy
Annual revenues rose 11% from £387.6m to £432.1m, while pre-tax profits of £92.1m were up on the previous year’s £85.2m. Net debt also fell, from £39m to £19.8m.
The final dividend payment has been increased from 8.6p per share to 8.9p, making a total dividend of 12.1p, up from 11.7p.
Moneysupermarket said during the year it helped households save an estimated record £2.7bn.
It said it expanded its offering with membership-based customer propositions MSM SuperSaveClub, MSE App and Quidco.
In Insurance, revenues were up 27%. Exceptionally high premium inflation continued, driving high search traffic in the quarter and fuelling high levels of switching in car and in home categories. However, towards the end of the year, the ramp-up in car premium inflation started to stabilise.
The Money category grew four per cent in the fourth quarter with continued growth in banking due to the availability of attractive products. Borrowing also grew compared with the same period in 2022, which saw a steep drop in conversion following the October 2022 mini budget.
Home Services was down six per cent with continued broadband softness in a competitive market. Mobile also softened in the quarter with less attractive provider propositions. As expected, there were no material revenues from energy switching.
Revenues from Travel were up nine per cent, with growth in the fourth quarter slowing in a competitive market. Travel insurance is included within Insurance.
And Cashback revenue was up one per cent, despite continued headwinds from online retail. The group had a strong performance over the Black Friday weekend with attractive promotions secured with merchants.
The group said in the first few weeks of 2024, it had similar trends to those seen at the end of Q4 2023 continue. It doesn’t expect any increase in energy switching revenue in 2024
However, it said it expects the comparatives in Insurance will become tougher, particularly in the second half of the new financial year.
But it said its trading performance and momentum in its strategic execution, gives the board confidence that group EBITDA will be within the current market consensus range.
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.”
