Pure play online sales machine Kogan.com has launched Kogan Insurance, opening a new front on founder Ruslan Kogan’s portfolio strategy.
The online retailer has already launched NBN, travel and mobile broadband services on top of its traditional consumer electronics offering.
The latest alliance for insurance is another way for Kogan.com to leverage its growing customer-base. The company says it’s looking for further opportunities.
The company has closed a three-year agreement with The Hollard Insurance Company Pty Ltd allowing Kogan.com to market insurance under a new brand, Kogan Insurance.
Kogan Insurance will initially have home, contents, landlord, car and travel insurance. Kogan.com will earn commissions on sales of all policies.
Kogan shares last traded at $2.24, up from the IPO price of $1.80 a year ago.
The shares jumped earlier this week after the online retailer released its latest cash flow numbers showing better than forecast operating results.
Last month the ASX-listed business has signed a new deal with its existing collaborator, Vodafone, to offer fixed-line NBN services in 2018 as well as mobile broadband plans this year.
“The Kogan Community continues to grow, with one in every six Australians subscribing to our offers,” says David Shafer, executive director of Kogan.com.
“We will continue to look for opportunities to deliver more value to our customers in our existing portfolio of businesses, and in new businesses.”
“We understand that buying insurance may not be exciting or glamourous — it’s simply about ensuring that you’re covered when something unfortunate happens.”
Hollard insures close to $100 billion of assets with more than one million policy holders and is part of a global financial services group operating in 20 countries.
Kogan.com shares dipped on its ASX-listing in July last year but have been rising this year as the company reports better than expected progress against its prospectus.
In May, the online retailing pioneer upped its earnings guidance.
Kogan.com now expects full year EBITDA (earnings before interest, tax, depreciation and amortisation) to be more than $11.5 million, up from previous guidance of between $10.5 million and $11.5 million.
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