AA insurance 'lost millions'
Thursday 25 May 1995
The losses were caused by a combination of falling sales, as policyholders deserted the AA for direct writers, and downward pressure on premiums in the past 18 months.
AA members attending today's annual general meeting will hear that the effect of this competition slashed insurance commission income by almost pounds 40m, down from pounds 200.7m in 1993 to pounds 161.9m last year.
The company said it hoped its pounds 18m restructuring exercise, in which 1,400 insurance jobs were cut last year, will bring it back into profit in 1995 and beyond.
Bob Chase, group managing director for the AA's commercial activities, said yesterday: "It would be fair to say we lost millions of pounds last year, but I do not want to say more because this is sensitive information.
"We are confident this is temporary. These things are cyclical and over the last five years, the insurance division has brought in profits of more than pounds 70m." He added that AA membership rose by 374,000 in 1994, up to more than eight million, while the number of policyholders insured through AA was still more than two million. He admitted there had been a fall in their number but declined to state how many.
Insurance figures for 1994 are partly set out in the AA's annual report, due to be presented today.
The financial services arm, which concentrates on financial products including a Visa card, loans and similar activities, was split away from the insurance side earlier this year.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...