24th Sep 2007 07:02
Homeserve Plc24 September 2007 Homeserve plc - Pre close statement Trading Update Homeserve plc, the Home Emergency Services Company, announces its trading updatefor the six months to 30 September 2007. UK Policy Membership Our UK policy business continues to perform well. Despite being our seasonallyquiet first half, good progress has been made in growing the policy membershipbase and in developing new products. We have recently launched "CombinedPolicies", which enable customers to purchase multiple policies in a singletransaction, and appliance cover for both white and brown goods. In addition,we have a new partnership with BT to trial a product that will offermulti-appliance home technology cover for their customers. Following a detailed review of our underwriting structure, we have entered intoa new 5 year underwriting arrangement with our existing partner Inter PartnerAssistance SA, part of the AXA Group. Under the new arrangement, it will nowtake 100% of our underwriting risk for new business with effect from 1st October2007. In addition to improving the margins in our policy membership business,the new arrangements will result in a release of funds from our captiveinsurance company. UK Emergency Services Our new leading edge Guidewire claims management system, which is interfaced toour Mercury workflow management system, is live with Liverpool Victoria, ourfirst integrated multi trade insurer client and available for all future hubpartnerships. Our Emergency Repair networks have responded well to the floods with customerservice levels being maintained. This is generating significant drying out andrepair work, although many household insurers are opting to cash settle smallerclaims in other trades in an effort to manage their call handling capacity.This has limited activity in certain areas and therefore our expectation is thatthe full year profit impact from the floods is unlikely to be material. International Our International businesses have made good progress in the last 6 months. Theagreement with FirstEnergy Solutions, signed at the end of August, providesaccess to a further 1.1 million households in New Jersey. This evidences thecontinuing material progress of our US business, where the pipeline ofopportunities remains encouraging. In Europe, Domeo continues to progress well and has just reached 1 millionpolicies. The acquisition of Reparalia in Spain during August has doubled ourmainland European revenue. This gives us a high quality repair network and thecredibility to help sign new affinity partners in Spain. Summary Homeserve has made good progress in the first half of 2007. As in prior years,we expect trading to be weighted to the second half of the year, which hastraditionally been the busiest for marketing activity and emergency repairs. The financial year continues to develop in line with our expectations, with thefull year outlook remaining unchanged. Homeserve expects to announce its interim results on Monday 26th November 2007. Enquiries Homeserve plcRichard Harpin, Chief Executive Tel: 44 (0) 1922 427903Jonathan Simpson-Dent, CFO Tel. 44 (0) 1922 427903 TulchanAndrew Honnor/Stephen Malthouse Tel. 44 (0) 20 7353 4200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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