Go Compare has reported a £12m profit during the 2009 financial year following the £4m loss recorded for 2008.
The aggregator said this is based on a 53% increase in annual turnover from £49m in 2008 to £74.9m in 2009 and an uplift in consumer response from increased brand awareness.
The company has also fully repaid its £30m loan facility agreed early in 2007 with Esure that has been used to fund Go Compare’s marketing. It added that it generates revenues from relationships with over 150 insurance brands.
Chief executive Hayley Parsons said: “We are delighted with these results – they show an efficient business competing strongly in a growing market. These figures are for 2009 but we are already on track to more than double profits during 2010.
“Following our launch in November 2006, initial losses stemmed from focused investment in our infrastructure and marketing for the Go Compare brand. We entered a pre-softened market with a clear focus on firm cost control, revenue per head, scalable infrastructure and marketing that focuses on maximising response as well as brand recall. These results and our current position speak volumes for the effectiveness of that strategy.” She added: “We invested heavily again last year to tap into clear growth potential within a hardening insurance market of time-pressed consumers who are embracing price comparison as the most convenient and transparent method of insurance shopping. Our ability to fulfil their needs and those of the insurers keen to reach them has paid extraordinary dividends.”
In 2009, Go Compare’s insurance quote volumes increased to 19.4million quotes from 12.3 million in 2008. It added that it is issuing in excess of two million quotes for car, home, pet, van and motorbike insurance each month and foresees this level continuing to increase over the coming years.
