Johns Lyng Group has established Disaster Recovery, a new business in response to growing demand for catastrophe repair works.

The move comes as the building services provider – which has contracts with many Australian insurers – says its recovery work from catastrophe events generated revenue of $164.8 million in 201/22, up 90.4% from a year earlier.

“By definition CAT events are unpredictable,” Chairman Peter Nash said in his address to shareholders at the annual general meeting last week. “We are, however, observing that CAT events are becoming more frequent, that their geographical footprint is widening and that their impact is more severe.

“Against this backdrop, due to our size and capability we are winning a greater proportion of the recovery work that these events generate. We are also observing that the recovery work that these events generate can often be multi-year in nature.”

He says the catastrophe events that occurred across the course of 2022, and in more recent months, have provided an exceptionally strong pipeline of work for the business that will be delivered over a number of years.

“In recognition of the different nature of the work that these events create, and the different stakeholders involved, we established a new business - Disaster Recovery,” Mr Nash said.

Johns Lyng says its Insurance Building and Restoration Services arm remains core to the company, accounting for 84% of overall revenue in the last financial year.

“Insurance Building and Restoration Services has a significant runway for growth,” CEO Australia Nick Carnell said.

He says the business is well represented on the major insurer panels but believes there remains a significant number of additional panel opportunities nationally.

This year the business has extended or established relationships with CHU, Suncorp, Honey Insurance, Blue Zebra and Steadfast Claims Solutions, Mr Carnell said.

He says the business is also looking at the broker side of things and have looked at ways to increase engagement with insurance brokers.

According to Mr Carnell, the company’s Emergency Broker Response product has been a gamechanger.

“This product allows insured customers to enjoy a rapid response service so that make-safe and other preliminary works can be conducted,” Mr Carnell said.

“Customers love it, brokers love it, and insurance companies love it because very often this timely work can mitigate more substantial damage and claims.”