The Johns Lyng Group Ltd (ASX: JLG) share price is up 2% after the rebuilding and restoration business revealed a strong US update.
US win
Johns Lyng announced it has entered into a partnership with Allstate to join its emergency response and mitigation panel. Allstate is one of the largest insurance companies in the US.
This contract will give the US division of Johns Lyng access to a potential 16 million Allstate policyholders throughout the US and covers the “provision of emergency response makesafe and water mitigation.”
Johns Lyng called this a significant achievement for the company and its US growth strategy.
The company said it has launched its claims management platform which aims to support and accelerate its growth. This platform allows claims from insurance carriers to be received and managed in a single platform, including allocation to operating subsidies and affiliate partners.
Management said it’s expecting a significant amount of work to be generated through this panel arrangement.
Johns Lyng said it’s now well positioned to ensure the increasing amount of claims through its various US businesses are managed “effectively and efficiently”. It said this is critical as it explores arrangements with other insurers as well as other strategic avenues for growth.
With this win, Johns Lyng has 25 business partners across 51 locations in five states, with a reach that spans the majority of the country.
Final thoughts on the Johns Lyng share price
After today’s rise, the company’s valuation is 30 times the projected profit for FY24, according to CMC.
The US is a huge market, so if it can keep expanding its presence in the US then there’s a good chance the business can become much larger than it is today.
It has appealing international growth potential, so if it’s able to keep executing well it could continue to beat the market over time.
