Repairer AMA Group reports 'positive engagement' over pricing
Crash repairer AMA Group has reported “continued positive engagement” with insurers over pricing, with a number of new or extended contracts entered into with a subset of partners.
AMA said last year it had reached agreement with its largest customer Suncorp over the pricing of services provided by Capital Smart for the period October 1 to June 30, while it has generally sought regular engagement in pricing discussions with partners.
“This ongoing engagement has resulted in further pricing increases outside the Capital Smart network as the group continues to work with insurer partners to ensure pricing alignment in the current inflationary environment,” the company says in a December quarter update.
The group has reached agreement with two insurers for the return of a meaningful portion of repair volumes after an agreement wasn’t reached during initial pricing negotiations.
“These agreements have come at terms generally consistent with those initially sought,” AMA says.
The company says it has pursued recruitment and retention strategies to combat the labour shortage. A targeted recruitment drive resulted in more than 70 international hires during the quarter. In addition, 44 new apprentices started, with about 350 engaged across the network.
AMA Group has reaffirmed its financial year guidance, ahead of releasing its half-year results on February 21.