Trade Me Ltd (ASX:TME) and Tower Insurance Ltd (ASX:TWR) have come together to offer New Zealand consumers the new an innovative, Trade Me Insurance.
The new online insurance product offered by Trade Me will offer home, contents and car insurance, where clients can get a quote, buy insurance, make a claim and manage their policy, all online.
Trade Me CEO, Jon Macdonald commented, “We’ve built a streamlined online insurance experience that is as useful and intuitive as possible, with a focus on the buyer. We’re also making sure that members of the Trade Me community get a particularly good deal so they’ll enjoy a 15 per cent discount on premiums from day one.”
Tower CEO, David Hancock commented, “Today’s launch is a real milestone for us. We’re focused on meeting changing customer expectations around insurance online, and investing heavily in the development of digital infrastructure. What’s most exciting about Trade ME Insurance is that if offers general insurance customers an end-to-end digital solution from quote to claim, and gives customers greater flexibility and choice.”
Due to relatively low levels of profit growth, Trade Me’s share price has declined approximately 35 per cent over the last 24 months. The company was removed from the NZX10 in June this year and as a result has experienced a sell-off on the NZ market. The company will release full year results on 20 August and if profit growth remains on the same path, we may see further declines.
Tower’s share price on the other hand has experienced healthy growth over the last 24 months however has experienced a decline of approximately 17 per cent in the last 5 months. This is most likely due to strong FY14 results boosting the company’s share price into over-bought territory and consequently leading to a decline. The decline was briefly interrupted by strong half year results in May, however the company has since shifted back down to the $1.90 mark.
Author: Ben Visser
Aug 14, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.