AA motor policies rise, but home policies fall
AA said it expects to deliver underlying earnings for the year to January in line with earlier guidance, and promised to update the market on its strategy review later this month.
It said it expects earnings before interest, tax, depreciation and amortisation between £390m and £395m, as set out last September.
Insurance services continue to perform well, the group said in a trading statement released through the London Stock Exchange.
Motor policies grew 6% to 629,000, which was offset by an expected 5% falling home policies to 818,000.
“Supported by our in-house underwriter and our investment in Insurer Hosted Pricing, we expect further growth in the motor policy book,” the company said.
AA said its in-house underwriter continues to grow rapidly and now has 407,000 policies in force, just over half of which are motor policies.
“As previously announced in September, we are currently reviewing the strategy to ensure that we can continue to build on the strength of our brand and distribution platform. We expect to update the market on this on 21 February,” the group said.