AA Insurance received $864.4 million in insurance premiums during its 2024 financial year, a 22% increase from the prior period.
The insurer made an extra $157.7 million from insurance premiums in its June 2024 year, up from $706.7 million in its 2023 year. Premiums are the total amount of money customers are required to pay for insurance coverage on policies issued by an insurer.
AA Insurance paid out $686.9 million in claims, up 3.3% from the previous year.
AA Insurance released its June-2024 financial statements to the Companies Register on Thursday where it reported an annual profit of $108.2 million. That's up by almost 186%, or $70.4 million, compared to 2023.
It made $854.3 million in insurance revenue, a 21% increase from the prior year.
It also paid out $85.3 million in reinsurance premiums, an almost 40% increase from the $61.2 million paid for reinsurance premiums in 2023.
AA Insurance is a joint venture between the New Zealand Automobile Association (NZAA) and Vero Insurance. Vero is owned by Suncorp which is the second largest general insurer across Australia and NZ.
AA Insurance provides home, contents, car and commercial small business insurance. The insurer has over 500,000 customers who have more than one million insurance policies.
AA Insurance was fined by the Financial Markets Authority (FMA) earlier in October for overcharging thousands of customers more than $11 million.
AA Insurance was found to have failed to apply multi-policy and membership discounts and guaranteed no claims bonuses as well as misleading its customers in marketing material about the insurer’s multi-policy discount offer.
The insurer was ordered to pay a penalty of almost $6.2 million.
The FMA filed civil proceedings in the High Court at Auckland in June 2023.
Suncorp NZ reported its annual results for the June-2024 year back in August, showing the insurer made $2.8 billion from insurance premiums.
It reported a net profit of $230 million in the June-2024 period – double what it reported in its full 2023 financial results.
Suncorp NZ covers approximately 850,000 households and $590 billion of assets across New Zealand.
29 Comments
I know, and while i’m not denying climate change, and understand the need and utility of these models, i cant help but wonder how long the masses will tolerate the core price increases. It cost me $900 for my WOF recently and i was astounded at the cost of parts now given i can fix many things myself.
Or we can do as other countries have done and buy our insurance through our mutual insurers (i.e. non-profits) so they keep the for-profit insurers in check?
So how many mutual insurers are left in NZ? ... [silence]
... But don't feel bad. The dumb Australians privatized theirs too.
Who knows, maybe when we get a real government, for-the-people and only-for-the-people, they'll set up a non-profit insurer to kick some market ass. Then we'll know what real competition looks like. And then we'll also see how hollow the lies about how 'private businesses' are so much more efficient than public ones are too.
(I wonder how many Kiwis even know what 'mutuals' are?)
FMG is a New Zealand mutual insurance company trading under its own act of parliament
They also increased premiums massively as well and also announced a record profit about $100 million
All the insurers seem to have made record profits this past year
Us kiwis are being fleeced by supermarkets, building suppliers , Banks and insurance companies
Cant see any politicians around with a will to fix things
CoNF. Govt appointed board deploying capital more effectively than private competitors in one of the worlds higher natural risk markets where scale, reinsurance buying muscle and legacy data are mission critical, is a pipe dream. Youi tried the start up game in NZ and crashed. Attempting to revive the corpse of State Insurance would go the same way.
Middleman,
(Please, next time you post, after all the editing and re-editing, please help by removing all the spaces at the end of your edited text. Ed, a simple bit of javascript would make such requests unnecessary.)
Your opinion is noted. But mutuals are not, in almost all situations, run by governments.
However, given the massive capital requirements to challenge what successive govts have allowed to become 'the market', only government is likely to have a large enough balance sheet to allow mutuals to compete with the oligopoly that currently exists.
I'm sure you don't mean that. Anyway, it doesn't matter if the other party is not insured as long as you are fully insured. For the "middle-class" it's just the cost of motoring.
Also, people, please don't rely on third party insurance. I have been hit three times in the past five years, causing minor damage, and the offenders refused to give their details or just drove off. Damage not being visible doesn't mean there isn't any. My bumper looked fine but was loose and the brackets holding it on were crushed in one case. None of them appeared to be locals if you know what I mean. I'm not sure insurance is a thing in other countries but you cannot rely on others doing the honourable thing. Just my anecdotal experience.
"I'm sure you don't mean that."
Um. No. I meant every word.
"Anyway, it doesn't matter if the other party is not insured as long as you are fully insured."
Methinks you don't understand that insurances companies suing uninsured people to recover losses, i.e. people who have almost nothing, doesn't work well.
Australia has "compulsory third party insurance", it's included in the rego, about 350 a year for the CTP component for a standard car, it doesn't cover any property damage, you need third party insurance on top of CTP for that. You have a few options for CTP and they all cost the same.
AA Insurance was fined by the Financial Markets Authority (FMA) earlier in October for overcharging thousands of customers more than $11 million.
AA Insurance was found to have failed to apply multi-policy and membership discounts and guaranteed no claims bonuses as well as misleading its customers in marketing material about the insurer’s multi-policy discount offer.
The insurer was ordered to pay a penalty of almost $6.2 million.
Does AA Insurance have to pay their customers back the overcharged amounts? If not, that's a sweet $4.8M gain right there.
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