Mortgage Advice Bureau Share Price (MAB1)

Returning to the protection sales opportunity when new mortgage sales are low which we speculated on in October, I note that today Andy Walton of MAB1 is reported as saying

"“As a business, we became more focused on protection conversations at the mortgage product end date." and

“Subsequently, we saw a 21% increase in protection sales in 2023.”

https://healthcareandprotection.com/why-truss-mini-budget-focussed-renters-minds-on-the-need-for-income-protection-analysis/

Increased revenue vs mortgage market falls is a a massive achievement.

"UK Finance's latest estimate of gross new mortgage lending for 2023 is £226bn[1], representing a 28% reduction on 2022. Despite this difficult market, the Group increased its revenue for the year by 4% to circa £239m."

An increase to >3% holding by SEB Investment Management of Stockholm is interesting. That's a major fund manager in Sweden - one of the largest asset managers in the Nordic region.

Hi Busicat, if i may perhaps I could provide some input on your question........... Westang is correct in that more protection is sold to clients purchasing a property as the client is in front of the advisor at the time of arranging the mortgage and wants to protect their future. Figures for Life sales measured against Purchase/Remortgage/Product Transfers are only available with the organization such as MAB or Life Company. In times troubles such as now within the property market advisor have more time on their hands so will look at ways of generating sales, hence why they will now be concentrating on existing clients that are coming to the end of their fixed rate lock ins, thus the opportunity arises to look at their existing protection or lack of protection. When interest rates reduce and the purchase market increases, advisors will be concentrating on new mortgages which are more profitable. Bisicat, you are correct in one thought, selling to clients at this present time is very tough especially as mortgage payments would have increased. Hope this helps.

Westang, have you numbers to show that "Life protection sales [...] are much stronger on [house] purchases, "?

I ask because in mortgage lull periods, networks like MAB typically turn additional energy towards protection sales, including for existing unprotected mortgage customers. (Admittedly not an easy pitch currently though, with so many under financial strain.)