Quotesmith.com Named to Power Life and Health Insurance Offerings at Insurance.com
Quotesmith.com, Inc. (ticker: QUOT, exchange: NASDAQ) News Release - 10/24/2003
Quotesmith.com Named to Power Life and Health Insurance Offerings at Insurance.com
Deal expected to contribute $2 million of revenue and $300,000 of net profit in 2004
DARIEN, IL (October 24, 2003) -- Quotesmith.com, Inc. (Nasdaq SmallCap: QUOT) has today announced that it has signed a strategic alliance agreement with privately-held ComparisonMarket Inc. to power the life and health insurance offerings at Insurance.com starting in January 2004. Terms of the agreement were not disclosed.
ComparisonMarket Inc. provides multi-company online auto insurance quotation and fulfillment services to financial institutions and other portals. ComparisonMarket also owns Insurance.com, a popular online insurance marketplace.
"We are very excited to have been chosen by ComparisonMarket to power the life and health sections of Insurance.com," remarked Quotesmith.com CEO Robert Bland. "Insurance.com has a great reputation and we are looking forward to working with the ComparisonMarket team of professionals to enhance the consumer shopping experience at Insurance.com. A distinct benefit to Web-savvy consumers who might visit both Insurance.com and our own Insure.com is that they will experience continuity of content with respect to auto, life and health insurance starting in January."
"We believe that this is going to be a win-win opportunity for us and Quotesmith.com," said David L. Roush, chief executive officer of ComparisonMarket. "Quotesmith.com has a 19-year track record of serving self-directed online insurance shoppers and was a natural choice for us when it came time to name a going-forward technology and order fulfillment partner."
Under the terms of this strategic insurance marketing and fulfillment alliance, online customer traffic from Insurance.com to Quotesmith.com is expected to commence in January 2004. Receipt of commission revenues by Quotesmith.com from these policies are then expected to begin in April 2004.
As part of the agreement, Quotesmith.com will continue to send qualified automobile insurance buyers to ComparisonMarket and also contribute Quotesmith's library of 3,000 originally authored insurance articles, calculators and tools to Insurance.com and its various partners.
Commenting on the new alliance, Quotesmith.com chief financial officer Phil Perillo remarked, "This deal substantially enhances our 2004 business plan because it is expected to generate approximately $2 million of revenue and $300,000 of net profit for us in 2004. We're confident that this agreement will open up a significant new source of life and health orders that can be profitably fulfilled by us with very little change to our operational cost structure."
Lou Geremia, president of Insurance.com, said, "Beginning in January, our comparative life insurance engine will be expanded to provide instant quotes from over 90 leading companies and our health insurance engines will expand to provide quotes from over 110 leading health care companies. Quotesmith.com has proven buy-online and buy-by-phone capabilities that are consumer-friendly, fast and efficient. This agreement demonstrates our commitment to providing the best consumer insurance marketplace."
Originally founded in 1984 as Quotesmith Corporation, the Company owns and operates Insure.com, a popular online insurance marketplace and consumer insurance information service. Visitors to Insure.com can obtain comparative auto, life & health quotes from more than 200 leading companies and have the freedom to buy insurance from the company of their choice. The Insure.com Web site also provides helpful insurance decision-making tools and calculators and supports an online library of more than 3,000 originally authored insurance articles that are not available from any other single source. Insure.com also provides personalized insurance brokerage and policy placement services for its customers through the use of licensed, in-house agents. Shares of Quotesmith.com trade on the Nasdaq SmallCap Market under the symbol "QUOT."
Headquartered in Cleveland, OH, ComparisonMarket, Inc. enables financial institutions, affinity groups and online marketplaces to offer their customers real choice and savings opportunities on auto insurance. Through its partnerships with top insurance providers, ComparisonMarket provides instant, accurate comparative rate quoting and purchase capability via the Internet or over the phone. ComparisonMarket's nationwide service helps financial institutions improve customer retention by allowing them to provide their customers with better services and more products. The service also gives financial institutions, affinity groups and online marketplaces a competitive advantage to attain new customers. ComparisonMarket also owns and operates Insurance.com, a popular consumer online insurance marketplace.
Cautions about Forward-Looking Statements
This announcement may contain forward-looking statements that involve risks, assumptions and uncertainties pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. This announcement also contains forward-looking statements about events and circumstances that have not yet occurred and may not occur. These forward-looking statements are inherently difficult to predict. Expressions of future goals and similar expressions including, without limitation, "intend," "may," "plans," "will," "believe," "should," "could," "hope," "expects," "expected," "does not currently expect," "anticipates," "predicts," "potential" and "forecast," reflecting something other than historical fact, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Investors should be aware that actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. Reported Web site activity and/or quotes are not necessarily indicative of any present or future revenue. The Company will not necessarily update the information in this press release if any forward-looking statement later turns out to be inaccurate. Potential risks and uncertainties include, among others, declines in the life insurance industry, level of acceptance of purchasing insurance over the Internet by consumers, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risks of system interruption, the evolving nature of its business model, the increasingly competitive online commerce environment, dependence on continuing growth of online commerce, risks associated with capacity constraints and the management of growth as well as the risks associated with potential terrorism threats and the war in Iraq. More information about potential factors that could affect the Company's financial results are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003, both of which are on file with the United States Securities and Exchange Commission. Quotesmith.com, Insure.com QuotesmithPro are service marks of Quotesmith.com, Inc. All other names are trademarks of their respective owners. � 2003 Quotesmith.com, Inc. All rights reserved.
Additional risks and uncertainties affecting the signed strategic alliance agreement with ComparisonMarket include the following:
- The anticipated financial benefits to Quotesmith.com will depend upon a number of conditions and variables, including ComparisonMarket's ability to provide us with the anticipated quantity and quality of bona fide insurance coverage requests, our ability to convert such requests into paid policyholders in a reasonable length of time and our ability to successfully integrate and populate the Insurance.com Web site platform with our technology and order fulfillment systems.
- Integrating the operations of Insurance.com with those of Quotesmith.com will create challenges for the operational, financial and management information systems of Quotesmith.com. If the strategic alliance poses greater than anticipated challenges and risks, such alliance could have a negative effect on the operating results of Quotesmith.com.
SOURCE Quotesmith.com, Inc.
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