Yahoo Finance Moneysupermarket profits hit as energy crisis offsets travel gains
Consumer demand for travel insurance is returning to near pre-pandemic levels, according to the price-comparison site Moneysupermarket, but high energy prices mean it does not expect any profit from tariff switching this year.
The financial services platform, which helps consumers compare deals, said revenue from its travel insurance comparisons had bounced back in the last three months of 2021.
Revenues at its Travelsupermarket division reached 35% of 2019 levels in January, as further easing of coronavirus restrictions was announced.
However, it said high wholesale energy prices meant there had been no switchable tariffs available to consumers since October.
As a result, the London-listed company said it would not make any profit this year from customers using their platform to compare deals from energy providers, although it predicted the tariff-switching market would return in the medium term.
Consumers may also face higher insurance premiums this year, according to Moneysupermarket, which said car insurance premiums were climbing, while there had been more significant rises in home insurance premiums. As a result, it said, more consumers had been searching to compare insurance prices.
The company said insurance providers were still working out their strategy after the introduction of new insurance rules by the financial watchdog in January.
The Financial Conduct Authority’s general insurance pricing regulations are part of efforts to tackle loyalty penalties, where policyholders who renew existing insurance policies are charged higher premiums than new customers.
Moneysupermarket, known for its sometimes controversial advertising campaigns, reported a 7% fall in pre-tax profit in 2021 to £100.5m, down from £107.8m a year earlier, partly because of cost increases after acquisitions.
The price comparison firm agreed a £101m deal in October to buy the cashback website Quidco, which pays a cash reward to consumers who use its site to click through to shop at specific online retailers.
“The addition of cashback aligns well with our purpose of helping households save money and brings new opportunities,” said Peter Duffy, the chief executive of Moneysupermarket Group, which includes MoneySavingExpert.com.
