It looks like all is well at insurance and roadside assistance provider The AA.
Ahead of the release of the company’s full-year results at the end of March, AA Plc published its pre-close trading update yesterday (February 11) and pointed to “positive operational momentum” in the year ended January 31 (FY20).
Without citing figures, the group said it looks forward to announcing growth in FY20’s trading EBITDA (earnings before interest, taxes, depreciation, and amortisation) as well as strong free cash flow generation in line with market expectations.
AA Plc noted that its insurance business continues to deliver “strong rates of growth,” with home and motor both contributing. The insurance unit consists of The AA’s broker, in-house underwriter, and financial services business.
“During the year, both our motor and home books grew in line with expectations, reflecting the strong profitable growth of our in-house underwriter and the benefit of ongoing investment in systems to further accelerate the growth of the broker,” explained the enterprise in its update.
As for the roadside operations, AA Plc said it has successfully stabilised the decline of its paid membership base, with the second half of the year witnessing a return to growth.
The AA added: “We were pleased to have retained or extended all our key B2B contracts due for renewal in FY20, including TSB, Toyota, Lex Autolease, and Northgate. We also won several new contracts including Admiral and Uber.”
