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Homeserve to sell Piedmont policy book for $22m

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Home repair firm Homeserve said that its revenue climbed 15 per cent last year, largely due to an exceptional performance in its North American division.

Home repairs international firm Homeserve announced this morning its intention to sell to gas company Piedmont its policy book, as shares went down 3.67 per cent.

Homeserve cited PiedmonHomeserve cited Piedmont’s acquisition by US energy giant Duke as the main reason for selling the policy books built during the two companies’ partnership, set to expire at the end of April.

Piedmont will buy the policy book between the end of FY2022 and the beginning of FY2023, acquiring around 180,000 policies and 140,000 customers for $22m.

“By the end of FY23 we expect to replace the customers we lose from this transaction by re-investing the sale proceeds in organic marketing,” Homeserve’s North America chief executive Tom Rusin said.

“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.”

After a 15 per cent jump registered last year because of exceptional performance in North America, the company this year went on a downward spiral, with shares plunging from 1,212p to 803.50p on 12 October.