General insurance shines for iSelect
iSelect’s general insurance business enjoyed strong revenue growth in the half-year to December 31.
The comparator does not give individual figures for its general and life insurance businesses, preferring instead to combine their results.
But it says the underperforming life business dragged on overall insurance earnings, with operating revenue down 11% to $12.8 million. Earnings before interest, taxation, depreciation and amortisation were $1.9 million, down 24% on the corresponding period in 2016.
“We have gained positive momentum in our general insurance business, launching pet insurance, travel insurance and, more recently, relaunching the home and contents insurance business to be a fully integrated end-to-end solution, enabling us to provide our customers with a seamless experience,” iSelect says.
“This has resulted in increasing lead volumes in the general insurance business, with an aim to capitalise on this in the second half of the year in the growing general insurance market.”
The comparator, which also now operates as a “digitally enabled broker”, says overall net profit fell 81% to $478,000.
It blames the plunge on factors including higher marketing investment in digital channels and stable overheads, and investment to support back-end and customer-facing technology.