AA salutes successful year as new underwriter service launches
In a year-end trading statement short on financial detail, AA Plc said trading had remained on course to meet expectations and it had as it launched its insurance underwriter service in the last week of January.
The motoring organisation said the year to 31 January, the first full year of its transformation since listing, had been completed "to budget and on time".
Moreover, the decline in membership numbers has continued to slow thanks to investment in marketing, new products, more attractive rewards, and a mobile app which has now been used in more than 10% of members road breakdowns.
The major programme of modernisation and transformation set out at its June 2014 flotation has also seen investment in new IT systems that, once operational, are designed to enable cross-selling of a broader range of products across the business, facilitate efficiencies, improve customer experience and provide the platform to develop the AA's digital positioning.
In the statement, management said they were encouraged by the winning of a roadside assistance contract with Lex Autoleasing, while the recent strategic steps in connected car technology, including Trakm8 for fleets and the Intelematics JV, "give the AA a new level of digital capability".
Backed by an experienced management team, the launch of the insurance Underwriter in the last week of January aims to build on the strength of the AA brand and unique data which is felt will enable more effective pricing of risk.
The underwriter will initially focus on AA members and look to build business over the next few years supported by a significant level of reinsurance.
Full year results will be announced on 5 April.
Shares in the company were up 4.4% to 287.7p by 0845 GMT on Thursday.