AA insurance revenues flatten out
The AA’s Insurance Services has reported a seven per cent drop in motor insurance policies in the first half of 2016 compared to 12 months ago.
It said this was a result of underwriter premium increases resulting in high levels of ‘customer churn across the market’.
The company also reported a small decrease in Ebitda from £37m last year to £35m this year, pointing to ‘lower earnings from motor insurance partially offset by improved home insurance profitability and cost savings.’
Overall, AA figures showed revenues were flat for the first six months of 2016 compared to 2015, although its number of policies dropped from 2.1 million to 1.9 million.
Meanwhile, the AA posted further revenues of £1m for its Insurance Underwriting division, which launched in January. It says it’s underwritten 25,000 motor policies and will increase that to 100,000 in the coming months.
It stated, ‘In August 2016 we expanded into home insurance, which, like motor insurance, is an area where the combination of our brand and our proprietary data gives us a marked advantage. We underwrote 25,000 motor insurance policies in the six months since launch and are on track to underwrite over 100,000 policies in the first year.’