MoneySupermarket owner looks to calm AI jitters as it posts record sales despite insurance headwinds
The owner of MoneySupermarket Group sought to calm investor nerves over the impact of AI as it battled 'significant' headwinds in its insurance division.
Mony Group reported 'record' half-year revenue of £446million, a 2 per cent increase on the previous year, as more customers switched energy suppliers to save on their bills.
But it flagged softer conditions in car and home insurance, with reduced switching volumes, offset by growth in life insurance.
Revenue in the division fell 1 per cent to £232.5million as customer numbers fell by 1.1million to 12.7million 'driven by the expected mix out of car insurance enquiries with market contraction'.
Mony Group has suffered a selloff in recent weeks, following the launch of a new AI tool which allows customers to access car insurance deals based on their location, driving history and age.
Mony Group flagged softer conditions in the home and car insurance market after an AI related selloff in recent weeks
Shares in the group fell as much as 13 per cent and are down over 15 per cent in the year-to-date.
Chief executive Peter Duffy sought to calm nerves over the impact of AI on the firm in an update this morning.
He said: 'Our leading data and tech architecture, combined with the power of our brands has positioned us exceptionally well to harness the opportunity of AI, and is powering our momentum as we head into 2026.
'This is a business with energy, resilience and momentum that is well placed for continued growth'
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It also said AI had helped the business to run a 'leaner, faster and more innovative organisation'.
Investors seemed convinced, with shares rising 1.31 per cent to 154.91p at the open.
Last week, MoneySupermarket, which is advertised by Judi Dench, launched an app for ChatGPT, which it said would position it early 'in an LLM-driven ecosystem.'
Elsewhere, the London-listed firm said revenue from its travel business fell 22 per cent during the second half of the year, as it moved to a minority shareholding in Ice Travel Group.
Cashback revenue also fell 18 per cent amid 'subdued' consumer confidence, which was offset by a 33 per cent jump in home services, which includes energy switching.
Mony Group announced a £25million buyback and a final dividend of 9.3p, making the full year proposed dividend 12.63p per share.
Mark Crouch, market analyst for eToro, says: 'MONY Group's latest results are the kind that leave investors conflicted, solid fundamentals on one hand, but persistent cracks in sentiment on the other.
'Management's decision to announce a further £25m buyback alongside a slightly higher dividend is clearly an attempt to shore up confidence.
'And while strategic moves like expanding SuperSaveClub and the OpenAI partnership are interesting, right now the market is looking for evidence that these will drive tangible growth, not just promise it.'
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