HomeServe France

From its beginnings in 2001, our French business has risen to become a leader in the home assistance market.

 2018 stats

Strong retention rate at 88%

Acquisition of Electrogaz in December 2017 to drive heating installations strategy

Income per customer up 5% to €106

Operational performance

HomeServe France’s core Membership business is highly profitable and cash generative. Growth opportunities were pursued with potential new partners and in December 2017 the French business made its first step into providing heating installations through the acquisition of Electrogaz.

Total customers increased to 1.1m as France continued to have the highest retention rate in the Group at 88% (FY17: 89%). Customer service standards remained very high as evidenced by achieving the Élu Service Client de l’Année for the second year running. Partner relationships with Veolia and Suez are strong and delivered 0.1m new customers (FY17: 0.2m)

Key to further growth in the Membership business is unlocking a new partnership and there is a pipeline of opportunities at various stages of discussion with energy and water partners. Additional partnership opportunities have been agreed with Veolia to launch a multichannel approach to marketing, reducing reliance on direct mail and taking advantage of increased calls into Veolia’s centralised contact centre to grow the number of sales made directly by the partner, similar to the approach undertaken with Suez. In energy, HomeServe has worked with Butagaz for a number of years and will now partner with them to sell membership products as Butagaz looks to grow its share of the mains domestic gas and electric supply market.

Initial steps were made in FY18 to pursue HomeServe’s strategy in heating installations with the acquisition of Electrogaz, a business in the South of France with almost 60 years of expertise in the repair, maintenance and installation of hot water and heating systems, renewable energy devices and domestic air conditioning and ventilation systems. The business has already been successfully integrated and is actively trading as Electrogaz…A HomeServe Company. FY19 will focus on proving out this opportunity and assessing potential to increase presence in this market.

France is also focused on becoming a digital-first business, looking to further improve customer interaction and introduce greater operational efficiency. FY18 focused on enhancing the website and providing the functionality for customers to manage their policy details online. These efforts will be continued by providing customers in France with the same opportunities as those in the UK to also use a HomeServe App and to make a claim online.

 

France performance metrics

FY17 FY18
Affinity partner households (m) 15 15
Customers (m) 1 1.1
Income Per Customer () 101 106
Policy Retention Rate 89% 88%
Policies (m) 2.3 2.3

France performance metrics

FY17 FY18
Affinity partner households (m) 15 15
Customers (m) 1 1.1
Income Per Customer () 101 106
Policy Retention Rate 89% 88%
Policies (m) 2.3 2.3