Customers switching insurance plans drove revenue up at Moneysupermarket, despite higher interest rates leading to a slowdown for its mortgage arm.
The comparison business said “rising insurance premiums and the squeeze on consumer finances” helped insurance revenue grow by 23% to £105.6 million in the first half of the year.
That growth in insurance helped to offset a decline in customers searching for new mortgages, which have been impacted by skyrocketing interest rates. According to Moneyfacts, the average two-year fixed residential mortgage rate today is 6.81%, the highest level since 2008.
Revenue from energy supplier comparisons remains minimal, as switching has been rare with all plans priced at the cap. Energy prices are set to come down as the year goes on and switching may soon return, but Moneysupermarket still expects minimal revenue from this artm in 2023.
MoneySupermarket made £213.8 million in revenue, up 11%, in the six-month period. It now expects its profits for the year “will be towards the upper end of market expectations”.
Analysts Jessica Pok and Monica Yang at Peel Hunt described the update as “a solid set of results”.
CEO Peter Duffy said: “Our purpose is to help everyone save money on their household bills, and this has never been more vital as cost-of-living pressures bite.”
The group also said that one in six UK adults, or 9 million people, get Martin Lewis’ weekly tips email as they look for solutions to the cost-of-living crisis. Earlier this year, it launched a MoneySavingExpertGPT chatbot.
The shares declined upon opening but are now up 3.4p, or 1.2%, to 279.4p.
