Esure hints at Gocompare demerger, appoints new CEO

Direct sales insurance firm Esure announced a strategic review of its Gocompare comparison service on Tuesday, and indicated an interest in spinning it out on its own.

The FTSE 250 firm said that, in the first full year of ownership after acquiring the outstanding 50% of Gocompare for £95m, the marketing strategy was “invigorated” driving growth in insurance comparison, the cost base restructures and focus given to a wider range of products.

“These actions have underpinned the board’s confidence in its guidance for a 20%-30% improvement in Gocompare’s profitability in 2016,” the board said in a statement.

It added that, as a result of the positive performance, it has commenced a strategic review of Gocompare - including a potential demerger - and will update shareholders on the review as and when appropriate.

The board also appointed Matthew Crummack as CEO of Gocompare, in a bid to strengthen the business as it continues to grow in insurance comparison and focus is given to a wider range of products.

It said Crummack served as CEO of hotel comparison service Lastminute from 2011 to 2015, until the business was acquired by Bravofly Rumbo Group, where he oversaw an upgrade of the company’s digital and technology platforms.

He was also formerly a senior vice president of lodging at Expedia in Europe and the US, and currently serves as a non-executive director at National Express.

“Now is the right time to review strategic opportunities for the Gocompare business, including a potential demerger, in order to continue to maximise value for our shareholders,” said Esure chairman Peter Wood.

"I am delighted to announce Matthew's appointment as the new Gocompare CEO and look forward to him building on the significant progress made since Esure's acquisition of Gocompare,” he added.

Wood said Crummack’s experience at Lastminute and Expedia, together with his expertise across digital technology platforms, makes him ideally placed to lead Gocompare forward into the next phase of its “growth story”.

“Jon Morrell has done a good job in our first year of full ownership, working with the team in Newport, the esure management team and with the business partners of Gocompare.com to lay the foundations for further growth.

“Jon leaves with our thanks for his work and we wish him well in his next role,” Wood said.