Avantia’s customer growth triggers boost in turnover

Avantia has revealed that its turnover jumped by 18% in 2022 following an uplift in customer acquisition.

In a statement released yesterday (16 June 2023), the virtual insurer said it secured £31.4m last year, up from £26.6m in 2021 and £21.9m in 2020.

It added that the growth was driven by a 26% increase in its customer base.

Avantia Group chief executive Mark Eastham explained that a key factor in this was its investment in technology.

“We continue to see significant opportunities to use the capabilities we have developed for the non-standard home insurance market to target the broader home insurance market,” he said.

“Having now completed the transfer of all our pricing capability on to our proprietary Cortex platform, we are accelerating our rate of innovation in this area.

“We also believe that the new pricing regulations are supporting these wider market ambitions as they remove the ability of the market to cross subsidise new business.”

Ebitda increase

Avantia is the investment company behind direct-to-consumer home insurance brand Homeprotect.

According to Companies House, Avantia’s earnings before interest, tax, depreciation and amortisation (Ebitda) as a percentage of turnover (pre non-recurring costs) for the year ended 31 December 2021 sat at 39.5% - up from 36.6% in 2020.

In 2022, the virtual insurer’s Ebitda (pre non-recurring items) grew by 11.3% to 50.8%.

“Our work to position our brand and operating model for broader market expansion continues, with investment in the new members of the management team already making a big difference,” added Eastham.

“We have also continued with our ambition to own more of the claims value chain, by contracting directly with our own supply chain.

”The combined pressures of high inflation and weather events in 2022 have only served to make this part of our strategy more compelling.”