- Aussie company Ensurance say its UK terrorism insurance policy is the reason for its fourth quarter of consecutive growth
- In May, the company’s British arm of business introduced the policy, protecting clients from terrorism related damage to buildings, employees, customers, and profits
- From the quarter ending on June 30, the company delivered $0.66 million in revenue, a considerable increase from last quarter’s $0.34 million in revenue
- From the fiscal success in the UK, the company says it intends to bring the terrorism policy to clients in America and Australia next
Ensurance touted four quarters of consistent growth today – attributing the performance to a very particular avenue of business.
For the quarter ending June 30, the company delivered $0.66 million in revenue. Company management attributed this success mainly to expansions in the UK following the launch of a terror-related insurance policy.
“Our expansion initiatives to aggressively grow our UK business is starting to bear fruit, and we remain focussed on driving growth in this area of the business, to capitalise on our unique position as a specialised insurer, providing products that meet growing underserved markets,” company Chairman Chairman Tony Leibowitz said.
In May, Ensurance’s UK branch of operations launched the terrorism and insurance plan. This gives policyholders cover for damage to buildings, profits, employees and customers.
Not only did this prompt long-term consistent growth for the company, its also a near 100 per cent increase of last year’s quarterly comparison of $0.34 million.
“I am delighted that this quarter has delivered a strong result for our shareholders, not only through the continuation of revenue growth, but also with the extended maturity date of the Convertible Notes,” Tony added.
The company says the unique terrorism insurance policy offers versatility, speaking to businesses of all sizes. The policy is also applicable outside of the typical construction and engineering sector when it comes to insurance schemes.
Recognising this growth, Ensurance has shown interest to bring this policy to the American and Australian markets – hoping to strike lightning three times.
Otherwise, in the UK alone Ensurance achieved an 85 per cent retention rate on collecting money from its clients.
Based on current renewal rates this week, the company believes ongoing recurring revenue growth will be achieved for the 2020 financial year.
Back in Australia, the company launched a new scheme as well. The ‘Latent Defects’ policy provides protection for clients against damage to property due to structural defects up to 10 years after initial construction is complete.
The company says this is the first scheme in Australia to feature a coverage of this kind. It targets the Australian building construction market, estimated at $100 billion in annual revenue.
A rough amidst the company’s positive quarterly report was the roundup on customer cash receipts – a 16 per cent decrease on the prior quarter. This decrease gave way for a cash receipt total of $0.53 million from $0.63 million.
The company believes this decrease is only a matter of timing between writing policies and collection commissions.
Ensurance also finished the quarter off with $2.52 million in cash reserves.
Today, shares in Ensurance are trading for 2.2 cents – unchanged from yesterday’s closing price in the market. The company’s market cap is sitting at $6.953 million.