4th Feb 2016 07:47
LONDON (Alliance News) - AA PLC Thursday said its full year results are expected to meet market expectations as the company continues to strengthen its position as the UK's pre-eminent motoring organisation.
The company said its marketing activities has continued to successfully slow the decline in personal member numbers, which is being exacerbated by the adverse price impact of the recent increase in insurance premium tax.
AA said it is trying to entice more members by offering new products, more attractive rewards, and the AA app which is now used by more than 10% of the company's personal members that have experienced a breakdown of their vehicles.
AA said the first phase of investment into new IT systems remains on budget and on schedule, with the company expecting the investment to enable cross-selling of a broader range of products across the business, facilitate efficiencies and improve customer experience.
The new IT systems will also enhance AA's digital capabilities, and provide a platform to develop the company's digital positioning, it said.
AA said the insurance underwriter was launched in the last week of January and the company said the underwriter, combined with the new IT systems, will initially focus on existing AA members and build the business over the next few years supported by a significant level of reinsurance.
"The underwriter will add an important capability to the AA's portfolio of services for motorists," said the company.
AA's full year results for the financial year ended January 31 will be released on April 5.
By Joshua Warner; [email protected]; @JoshAlliance
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