Esure may separate from GoCompare after profits fell 3%
Insurance comparison site GoCompare's adverts may be irritating for viewers, but the company's most recent results prove they are working. The firm posted a rise in revenues of 22% while profits rose by 9%. The same could not be said for parent company Esure, whose profits were down by 3%. A strategic review is set to determine whether Esure should separate from GoCompare.

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy notice Thanks for signing up to the

Breaking News email {{ #verifyErrors }} {{ message }} {{ /verifyErrors }} {{ ^verifyErrors }} Something went wrong. Please try again later {{ /verifyErrors }}

GoCompare was a rare bright spot in the midst of a gloomy set of results from Esure, the general insurer.

Fuelled by a typically annoying marketing campaign, the price comparison web site increased revenues by 22 per cent and profits by 9 per cent. Its parent reported trading profits down by 3 per cent and chopped its dividend by nearly a third.

GoCompare’s outperformance shouldn’t come as any great surprise. The success of price comparison sites is closely linked to the success of their ads. For them, it’s all about securing name recognition.

GoCompare gets that through a tubby opera singer (the actor now wears a padded suit after losing a lot of weight). The ads are extraordinarily irritating. Perhaps even more so than the meerkats favoured by one of its rivals. Campaign magazine described them as “the nation’s most love to hate ads”.

But that’s kind of the point. They get into your head and you are more likely to use the site when they do. The most recent campaign, launched earlier this year, has proven the point yet again.

Annoying though the ads may be, more power to them. Price comparison sites help people to shop around. They encourage switching between providers across a range of products, which fosters competition, cheaper prices, better service.

Consumers would do well to remember that they are businesses, there to make money, and it's always worth taking the time to shop around more than one comparison site if you’re shopping around for insurance.

But if you only use one you should still be better off than using none.

Better for all concerned if that one wasn't itself owned by an insurance company.

Business news: In pictures Show all 13 1 / 13 Business news: In pictures Business news: In pictures Flybe collapses Airline Flybe has collapsed. All future flights on the Exeter-based airline have been cancelled – leaving more than 2,300 staff facing an uncertain future, and wrecking the travel plans of hundreds of thousands of passengers. The chief executive, Mark Anderson, said: “Europe’s largest independent regional airline has been unable to overcome significant funding challenges to its business. AFP via Getty Business news: In pictures Future product placement will be 'tailored to individual viewers' Marketing executives say that product placement in films and televison shows on streaming services such as Netflix may be tailored to individuals in future. For instance, if data shows that a viewer is a fan of pepsi, a billboard in the background of a shot would host an advert for pepsi, while for a viewer known to have different tastes it could be for Coca-Cola Paramount Business news: In pictures Corbyn wishes Amazon a happy birthday In a card sent to Amazon CEO Jeff Bezos on the company's 25th birthday, Labour leader Jeremy Corbyn writes: "You owe the British people millions in taxes that pay for the public services that we all rely on. Please pay your fair share" Business news: In pictures No deal, no tariffs The government has announced that it would slash almost all tariffs in the event of a no-deal Brexit. Notable exceptions include cars and meat, which will see tariffs in place to protect British farmers Getty Business news: In pictures Fingerprint payment NatWest is trialling a new bank card that will allow people to touch their hand to the card when paying rather than typing in a PIN number. The card will work by recognising the user's fingerprint NatWest/PA Wire Business news: In pictures Mahabis bust High-end slipper retailer Mahabis has gone into administration. 2 Jan 2019 Mahabis Business news: In pictures Costa Cola Coca-Cola has paid £3.9bn for Costa Coffee. A cafe chain is a new venture for the global soft drinks giant PA Business news: In pictures RIP Payday Loans A funeral procession for payday loans was held in London on September 2. The future of pay day lenders is in doubt after Wonga, Britain's biggest, went into administration on August 30 PA Business news: In pictures Musk irks investors and directors Elon Musk has concluded that Tesla will remain public. Investors and company directors were angry at Musk for tweeting unexpectedly that he was considering taking Tesla private and share prices had taken a tumble in the following weeks Getty Business news: In pictures Jaguar warning Iconic British car maker Jaguar Land Rover warned on July 5, 2018 that a "bad" Brexit deal could jeopardise planned investment of more than $100 billion, upping corporate pressure as the government heads into crucial talks AFP/Getty Business news: In pictures Spotif-IPO Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold AFP/Getty Business news: In pictures French blue passports The deadline to award a contract to make blue British passports after Brexit has been extended by two weeks following a request by bidder De La Rue. The move comes after anger at the announcement British passports would be produced by Franco-Dutch firm Gemalto when De La Rue’s contract ends in July. The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process. Business news: In pictures Beast from the east economic impact The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year.

Esure would say that the two target different markets. And that’s true. It would also argue that they operate as separate businesses. Also true.

However, it just doesn’t sit well having a business whose raison d’être is to help consumers get cheaper insurance owned by an insurer.

A strategic review is currently under way that is likely to see GoCompare cut loose. That would be better for all concerned.