Shares in online retailer Kogan.com have jumped to a fresh high following news it will soon sell pet insurance as it continually expands its business.
Kogan.com says it has struck a partnership with PetSure, a subsidiary of The Holland Insurance Company, and will launch its pet insurance offering in the second half of this financial year.
The deal follows last week's announcement that Kogan had signed an agreement with private health insurer Medibank Group to sell budget health insurance.
Kogan.com's shares were up 51 cents, or 10.3 per cent, at $5.46 on Monday, significantly higher than its issue price of $1.80 and a fresh high for the company that began trading on the ASX in July, 2016.
The company's agreement with PetSure will allow it to sell pet insurance policies under a new brand dubbed Kogan Pet Insurance where it will earn a commission on each policy sold.
Executive director David Shafer said pet insurance was a growing category and Kogan had teamed up with one of the market's leaders.
Kogan, which listed on the share market in July 2016, has been expanding beyond selling electronics, apparel and other goods to take advantage of its extensive database of customers.
Alongside its retail business, it sells travel deals, mobile prepaid plans, home, car and travel insurance policies, and, more recently, fixed-line national broadband network home internet plans.
Kogan, which sells on eBay, and more recently on the newly launched Amazon Australia website, made a net profit of $3.7 million for 2016/17, more than quadruple what it made a year earlier after revenue jumped 37.1 per cent to $289.5 million.
In November, the company said its revenue for the four months to the end of October grew by 36.2 per cent and its earnings before interest, taxes, depreciation, and amortisation was up 58.3 per cent against the prior year's pro-forma EBITDA.
