Moneysupermarket's troubles grow as motor insurance market slows and energy switching halts as price caps lower bills
Under-pressure price comparison website Moneysupermarket today warned Covid-19 was hitting demand for insurance products, as even the previously strong growth in its motor cover business has been slowing.
Demand for motor cover was hit by the closure of car dealerships during lockdowns, but it stepped up when they opened again and people returned to their cars in droves.
The group has been struggling as banks tighten their lending criteria during the crisis to protect themselves against bad debts, meaning fewer Moneysupermarket clients are able to use the site to get new loans.
Meanwhile, the government's price cap on energy companies was meaning savings available to its customers from switching fell sharply, further hitting the company's revenues as fewer people switched.
Alongside almost non-existent demand for travel insurance, the company had little to cheer investors, although it retains a strong balance sheet even after paying its interim dividend.
Peter Duffy, who joined as chief executive at the group from Just Eat in a move announced in May, said he had joined in "challenging times."
"Our markets continue to be impacted by Covid-19, which is affecting our current performance. However, the group benefits from strong brands and high levels of cash conversion, so we are well positioned to weather this period of economic uncertainty and deliver future growth."
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