RACV Insurance isn’t sharing NRMA’s cheer from its annual results. The Victorian mutual, which is locked into the Insurance Manufacturers of Australia operation with NRMA, has recorded an after-tax profit of just $3.7 million. That’s a long way short of last year’s projected figure of $30 million.

The company saw its 30% share of the cake shrink dramatically as operating revenue fell from $636 million to $254 million. Under the joint venture agreement, RACV exchanged premium income for a commission and equity profit share from IMA. Weaker investment returns didn’t help the bottom line, either.

RACV Chairman Max Lay said the group is committed to “improving our financial performance by removing abnormal costs from the business and achieving growth through membership income and IMA commission”.