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iSelect chief out as results fall short

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iSelect CEO Scott Wilson has resigned – with immediate effect – after disappointing third-quarter results in the health insurance, and energy and telco divisions.

Both divisions have been badly affected by market volatility and lower than expected leads following marketing changes, particularly search engine marketing.

Leads in health insurance declined by 17% in the last two weeks of last month, with a further drop of 21% in the first three weeks of this month, the online comparator says.

March is typically the second-best month for health insurance performance.

No improvement in the health market is expected until the fourth quarter of next financial year.

iSelect has now lowered its earnings before taxation forecast for the financial year to $8-$12 million, from a previous forecast of $26-$29 million.

General insurance and life insurance are performing slightly above year-to-date expectations, the company says. Lead numbers are low, but this is offset by higher than expected revenue per sale.

Mr Wilson’s resignation was announced earlier today and is effective immediately. iSelect director Brodie Arnhold has been appointed Acting CEO, and the search for a replacement has begun.

Chief Marketing Officer Warren Hebard is undertaking a strategic review of the marketing strategy, to address lead-generation underperformance.