The roadside recovery group reported insurance performance boosted by a return to growth in motor and its Qatar-backed MGA
The AA reported higher revenue and profit from its insurance business, boosted by its own MGA.
Motor broking returned to growth, and the decline in home policies slowed.
Insurance trading grew 11% to £145m for the year to January, with the division’s trading earnings before interest, tax, depreciation and amortisation (EBITDA)up 8% to £71m.
The company attributed the improvement to its in-house underwriter, which was able to price competitively through the roadside assistance group’s extensive customer data.
As reported by Insurance Times, AA has a deal with Qatar Re who provide 80% of the capacity to AA underwriting. AA take the final 20%.
The in-house MGA, launched two years ago, was initially targeting around 250,000 customers upon launch.
The AA has big plans to grow in insurance, targeting non-roadside assitance customers, by using its rich bounty of data and own underwriting powers.
Total number of policies in force was broadly flat at 1.45 million, though the average income per policy rose 6% to £74. Total motor policy numbers were up 6% to 629,000, while total motor policies underwritten was up 94% to 223,000.
Home policy numbers slid 5% to 818,000, while home policies underwritten rose more than six-fold to 184,000.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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