Homeserve offloads shared policies to Piedmont for $22m

13th Dec 2021 07:01

(Sharecast News) - Home repairs and improvement business HomeServe, said it had sold policies shared with Piedmont Natural Gas Company to the same affinity partner for around $22m.
The deal between Homeserve and US-based Piedmont was due to expire next April. Homeserve decided to sell the policy book rather than continue managing it in a run-down to the end of the arrangement.

Homeserve said it would re-invest the proceeds from the deal into additional organic marketing activity across its other affinity partnerships, adding that it did not expect any material impact on customer or policy numbers, profit or net cash position.

Tom Rusin, chief executive of HomeServe North America, said: "This agreement represents the anticipated conclusion to our relationship with Piedmont following its acquisition by Duke, which is one of a very small number of utilities to run its policy books internally."

"HomeServe has great momentum in North America, is delivering on a strong pipeline of new partnerships and is ahead of our plan to deliver our next milestone of $230m operating profit."