Insurance gains lift RAA into profit
SA motorists mutual club RAA is back in the black, recording a $10.7 million profit last financial year, underpinned by strong results from its insurance business.
The mutual made a $2.3 million loss the previous financial year.
Its comprehensive car insurance line grew 16.9%, home insurance 14.5% and travel insurance 24% as gross written premium exceeded $250 million.
The insurance business was aided by favourable weather, which led to a $77 million decline in claims expense to $197.2 million.
Outwards reinsurance premium decreased to $32.2 million from $34.1 million.
“During the year we also invested significantly in new developments in our insurance, security and travel businesses, and we will continue to invest in these areas to cater for our growing membership base,” GM Government and Public Policy Jayne Flaherty said.
More than 30,000 new members joined last financial year, pushing total numbers to a record 720,670.