AA insurance earnings fall 21% as dual pricing ban hits commissions
The AA’s earnings fell 21% to £55m (2022: £70m) in 2022 as the insurance business suffered from claims inflation and lower commissions following the FCA’s pricing ban.
Adjusted earnings before interest, taxes, depreciation and amortisation fell in a ‘challenging external environment’, the broking group confirmed in its full-year results to 2023.
The AA said: “Driven by the challenging external environment, adjusted Ebitda in our Insurance business reduced by £15m to £55m (2022: £70m).
The underwriting business remained profitable, but it was negatively impacted by the inflationary environment that emerged during the year. The AA
“The underwriting
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