AA reveals growth in motor underwriter and broker
AA revealed growth in its motor insurance in a trading update.
The AA said: ”During the year, the motor policy book grew by c16% to c731,000 and ahead of our expectations we have managed to return the home policy book to growth, achieving a modest increase of c1.5% to c830,000.
”In line with our expectation for FY19, average income per motor and home policy fell to c£69, reflecting the investment in new business growth, which has on average lower commissions compared to the rest of the book.
”Our in-house underwriter continues to deliver strong levels of growth. In FY19, our underwritten motor book increased by c50% to c339,000, driven largely by our never member channel and the home book increased by c40% to c259,000.
”Supported by our in-house underwriter and our investment in systems, including Insurer Hosted Pricing, we expect further growth in our motor and home policy books in FY20.”
The AA had said previously that it reserves conservatively in fast-growing own in-house underwriter at around -0.75, the current Ogden rate, for its motor book.
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