InsWeb posts first-ever profit
InsWeb Corp. (Nasdaq: INSW) announced after-hours Monday that it turned the corner to profitability for the first time.
For the first quarter ended March 31, the Gold River, Calif.-based online insurer posted net income of $400,000, or $0.10 per share, on revenue of $8.1 million, versus a net loss of $1.7 million, or $0.41 per share, on revenue of $7.7 million in the prior year period.
InsWeb’s stock soared by more than half its value, or $1.73, to $5.04 in after-hours trading on the news. Shares have traded as low as $1.65 (on Sept. 11, 2006) and as high as $4.71 (on Jan. 12) in the past year.
Separately, InsWeb also announced the closure of its term life agency as the last stage in the company's plan to concentrate solely on lead generation opportunities.
InsWeb said it would continue to offer term life products to consumers visiting its online insurance marketplace through a lead referral model, which the company believes is more profitable and offers a more scalable opportunity.
The company also announced a reorganization involving members of its senior staff.
Jaimie Pickles, executive vice president, has been promoted to president and chief operating officer.
InsWeb was co-founded by chairman and CEO Hussein A. Enan in 1995. It aims to help consumers shop online and get insurance company-sponsored quotes for various insurance products. The company has contractual relationships with third-party providers for home warranty, recreational vehicle and motorcycle, and health and critical illness insurance.
