AAMI CEO Brian Keane is steering the company to awards a bigger share of the car insurance market after recording a 2001 operating profit of $69.8 million. The profit is higher than last year’s figure of $68 million when the company faced a major upheaval in the general insurance market. Now Mr Keane wants to raise the Royal & Sun Alliance-owned specialist’s market share from 20% to 35%.  

Although the results show a lower underwriting profit of $15.7 million, AAMI recorded a higher combined operating ratio of 97.9%. Total policy sales were up to $2.16 million. Premium income was also up 24.7% to $815.9 million.

 “AAMI was a major beneficiary of the heightened shopping generated by the substantial increases most of its competitors applied to their premiums from late 1999,” Mr Keane said. Total premiums have increased by 20% in the year and will surpass $1 billion this year.

How long will it take to get to a 35% market share? Mr Keane isn’t saying. AAMI is facing additional costs because of increased compliance procedures under the FSRA. It has also invested large amounts in its claims management area.

Mr Keane said he expects AAMI’s reinsurance costs – organised through the parent company – to double in the next year from 3% to 6%.