What goes on in the boardroom should stay in the boardroom – at least according to NRMA Motoring and Services. President Alan Evans is disappointed discussions about developing a mutual insurance company have been leaked to the media and is now doing his best to deny the story.

“No plans exist for NRMA Motoring and Services to set up a new mutual insurer,” he assured members via the group’s website.

While that may be true, he can’t deny the group has at least been considering the possibility.

Mr Evans has acknowledged the company is looking into the feasibility of expanding its operations. It is particularly interested in the expected costs and benefits of developing an insurance arm.

“During the 2005 election a number of candidates claimed that NRMA Motoring and Services should establish a new mutual insurance company,” he said. “The board felt it appropriate that all business proposals be fairly considered, which is why NRMA has commissioned a feasibility study into this matter.”

Any insurance arm is likely to be in direct competition with NRMA Motoring and Services’ 2000 spin-off, IAG, which has an agreement in perpetuity to operate under the NRMA Insurance brand. IAG has declined to comment on the study.

Mr Evans says NRMA Motoring and Services remains financially strong, with annual profits in the order of $50 million. “We will not undertake any endeavours that will jeopardise the future of NRMA Motoring and Services.”