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Asian expansion pushes up Cover-More profit

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Travel insurer Cover-More has reported net profit of $25.8 million for the year to June 30, up 13.7% thanks to expansion in Asia.

Net travel insurance sales grew 5.2% to $156.9 million and net medical assistance sales increased 1.9% to $66 million.

Group CEO Peter Edwards says Cover-More continues to perform well, with another year of double-digit earnings improvement and “substantial growth in our offshore business”.

“Our Australian operations outperformed the market, with sales growth more than three times the market growth rate.”

Cover-More reports a “significant acceleration in international business”, with its Asian division achieving gross sales growth of 22% in the year.

Asia now contributes 15% of group profit, compared with about 10% one year ago, according to Mr Edwards.

Cover-More has formed a travel insurance distribution relationship with Virgin Australia, due to start in October.

In New Zealand it is rolling out a corporate travel program and has partnered with IAG.

“Our India business is the clear leader in the agency channel and the second-largest player in the market – Cover-More is now close to securing its first intermediary partners there,” the insurer says.

Cover-More has also laid the foundations for expansion in North America.

Will Easton – MD of Emerging Markets for Facebook and former MD for Facebook Australia – is to join the board from September 1.