Specialist, integrated travel insurance and medical assistance provider, Cover-More Group Limited (ASX:CVO) this week announced full year results for the 12 months to 30 June 2014 (FY14).

Cover-More Group posted a 20.1% growth in pro-forma gross travel insurance sales to A$369.1 million and a 26.9% growth in pro-forma EBITDA (earnings before interest, tax, depreciation and amortisation) to A$51.9 million—up 9.7% on the forecast of A$47.3 million in the group’s IPO prospectus. Cover-More Group listed on the Australian Securities Exchange (ASX) in December 2013.

Cover-More Group operates in China, India, Malaysia and Singapore as well as in Australia, New Zealand and the United Kingdom.

Group Chief Executive Officer, Peter Edwards, said the past year saw Cover-More successfully transition from being a private company to a public company and achieve or exceed all prospectus objectives.

“Cover-More earned more than A$50 million of EBITDA for the first time and diversified our earnings base with almost 33% of our earnings coming from our health and medical operations and nearly 10% of earnings emanating from our Asian operations.”

He said Cover-More is focused on leveraging the scale, capabilities and systems refined in the group’s Australian operations into the developing Asian travel insurance market.

“It is important that we are in a position to shape the consumer value propositions in these markets as they develop and as the number of travellers grow and expectations from consumers increase.”

Key success points of Cover-More in Asia in the past 12 months include:

  • Asian EBITDA grew by 75.9% to $5.1 million, now representing 9.8% of group EBITDA—up from 7.1% in FY2013—on the back of strong growth in e-commerce revenues
  • establishing a platform to commence the distribution of travel insurance in China in FY2015, with the signing of an underwriting arrangement in China with CCIC, a subsidiary of China Re, and establishing a distribution agreement with one of China’s leading online travel agents, Qunar
  • building operations in Malaysia, with 18 people now employed by Cover-More in Malaysia in sales, e-commerce and travel insurance and medical assistance operations
  • integrating Cover-More’s Indian business operations subsequent to the acquisition of the remaining 56% of shares, post-IPO
  • being awarded Best Travel Insurance Provider in India by the Travel Agents Association of India.

Peter Edwards said that Cover-More is continuing to build for the future with innovation and refinement of the group’s e-commerce capabilities, product offerings and global operating platform.

He said Cover-More will focus on growing our international operations and leveraging success in Australia into Asia, both from a revenue and operational perspective.

To facilitate this, Cover-More announced the creation of the new position of CEO Asia to drive further expansion into China, India and South Asia, including Malaysia.

“This new role illustrates the focus that Cover-More has on these fast growing Asian markets and the potential growth we believe can be achieved in these markets.”

George Saunders, Cover-More’s current COO Australia, moves into this regional executive role and has relocated to Singapore.

“George has a strong track record of getting business done in this region,” Peter Edwards said.

Cover-More also announced a total dividend of 7.2 cents per share, 100% higher than the prospectus forecast, comprising an ordinary dividend of 4.0 cents and a special dividend of 3.2 cents per share.

ENDS

About Cover-More Group Limited

Cover-More Group is a specialist and integrated travel insurance and medical assistance provider with the leading market position in Australia and a growing footprint in China and India, as well as a presence in Malaysia, Singapore, New Zealand and the United Kingdom. Cover-More Group Limited was founded in 1986 and is headquartered in Sydney, Australia.

Additional information is available at www.covermore.com.

For further information, please contact:Cover-More Group LimitedAngela Cross, +61 412 929 397

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