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.
13 Comments
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?)
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.
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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