The iSelect Ltd (ASX: ISU) share price is going gangbusters today after the online comparison site announced a partnership with Bupa HI Pty Ltd.
Rising 11.1% to hit a new 52-week record of 40 cents a share, the iSelect share price has since slightly retreated to 38.5 cents per unit – still up 6.94%.
Let's take a closer look at today's news.
Image source: Getty images
What's the deal?
In today's statement to the ASX, iSelect declared its subsidiary, iSelect Health Pty Ltd, added Bupa to its list of health insurance providers that offer their services on its website.
With a minimum term of 12 months, iSelect is entitled to an unspecified premium for all Bupa sales that originate on its website. According to the statement, this is the first time Bupa and iSelect have partnered together. The company called today's announcement a "significant milestone".
Investors have welcomed today's news, judging by the iSelect share price movement.
According to the website Comparing Expert, Bupa is Australia's second most popular health insurance provider, with 25.4% market share. In total, 53% of Australians have some form of general health cover.
Management commentary
iSelect CEO Warren Hebard said
Expanding our range of providers is essential to ensure we remain Australia's go-to destination for comparing and saving across insurances, utilities and personal finance. Our highly-trained consultants are ready to compare our new broader range, and we look forward to building and growing our new relationship with Bupa.
Bupa's domestic health insurance director Chris Carroll added:
We know people buy health insurance in different ways and this partnership means more customers can have access to Bupa products and gain peace of mind from our cover.
We want to make health insurance as easy, convenient and accessible as possible, and partnering with iSelect ensures our policies are in front of people when they are looking to take out cover for themselves and their families.
iSelect share price snapshot
Over the past 12 months, the iSelect share price has increased 51% to its current price of 38.5 cents. Only 2 years ago, however, iSelect shares were trading for 62.5 cents each, representing a 38.4% fall since then. It should be noted the COVID-19 pandemic began within this period, with significant impacts on the healthcare sector.
iSelect has a market capitalisation of $84 million.
