Esure weighs up multi-million pound demerger with Gocompare

Insurance business Esure is considering a potential demerger with Gocompare after taking over the company in 2015 for £95m.

According to a BBC report, Esure is expecting Gocompare’s profits to rise by as much as 30% this year. Analysts at financial services firm JPMorgan believe the business could be worth as much as £466m.

A new chief executive has also been appointed at Gocompare. Matthew Crummock, who replaces Jon Morrell, served as the boss of travel retailer Lastminute.com between 2011 and 2015.

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

“Shareholders will be updated following this review process.”

Esure has said that since it took over Gocompare, the company’s “reinvigorated” marketing strategy has driven growth in its insurance comparison offer, restructured its cost base and given focus to a broader range of products.

Speaking to the Financial Times, Esure chief exec Stuart Vann said: “We’re very excited with where GoCompare is.

“The business hadn’t gone anywhere for three years. We have invested in it and reinvigorated it. It’s in a really good place for us.”

He added: “The board is looking at what the best opportunity is for shareholder value.”

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