Home emergency business reports an improving retention rate

HomeServe has said it is performing ‘in line’ with expectations in its interim management statement for the first three months of the 2014/15 financial year.

The home emergency business said it was on target to achieve its aim of 0.3 million new UK customers over the year and expected total customer numbers to stabilise at approximately 2 million.

For the 12 months to 31 March 2014, the number of HomeServe customers fell to 2.1 million from 2.3 million in the wake of a mis-selling scandal that saw it receive the FCA’s largest ever retail fine for mis-selling policies this February.

But retention rates have since improved, and HomeServe is forecasting a retention rate of around 82% for the current financial year.