The Royal Automobile Club (Western Australia) expects full ownership of RAC Insurance to lead it to greater glory after recording an annual loss of $7.9 million.

The insurance business saved RAC-WA from sliding deeper into the red, after the organisation last year paid $104.6 million for Suncorp’s 50% stake in the division.

A subsequent revaluation of RAC Insurance added $48 million to the motoring organisation’s bottom line profit and contributed to a $240 million increase in total revenue of $399 million.

A $225 million increase in total liabilities and higher investment losses served to unwind those gains.

The motoring organisation’s decision to reclaim full ownership of RAC Insurance followed Suncorp’s acquisition of Promina two years ago. That triggered a clause which gave RAC-WA the right to raise its stake to 100%.

The price it paid was only slightly more than the $100 million Promina paid for the stake in 2001.