Homeserve profits leap despite dip in retentions

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Reporting an 18% jump in pre-tax profits to £71million in the year to the end of March, chairman Brian Whitty told investors: "We are carefully monitoring the potential impacts of the current economic climate."

Homeserve's figures reveal that retention rates - the number of its customers signing up for another year of cover - dipped marginally in the year from 86% to 85%, possibly indicating that insurance policies and warranties may be among the first costs to go for households dealing with rising inflation and higher borrowing charges.

However, Homeserve chief executive Richard Harpin disagreed. "We are not seeing any effects from the economic downturn at present and there is an argument that in difficult times worried customers are more likely to want to have peace of mind," he said. "It is also a fact that our customers tend to be older, have paid off their mortgage and so are not so vulnerable to a downturn."

The company is lifting its dividend 25% to 31.25p on the back of strong prospects of growing the business abroad. In the UK, Homeserve sells its policies through companies such as Thames Water and today it said it had also linked up with Spanish household energy supplier Endesa.