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On the back of strong member and insurance policy growth, the state’s largest membership organisation has bounced back, recording a profit in financial year 2023-24.
Following two years of extreme weather and record claims, RAA achieved a $2.1 million profit after tax in the 2023-24 financial year with record travel sales, roadside call outs, strong motor insurance growth and market-leading retention in a challenging environment.
The 2023-24 financial year saw RAA:
Chief Executive Officer Nick Reade said RAA’s successful financial results reflected the organisation’s strategy to diversify its offerings, rebuild capital, create a more resilient business model – and return more to members.
“We’re continuing to build a more robust, resilient and stronger business that meets the future needs of our members,” Mr Reade said.
“Last year we said we would grow and accelerate new businesses and diversify our revenue streams. We’re back in the black and we expect this trend to continue in the new financial year.
“As well as great results and service in our traditional areas of insurance and roadside, we’re making strategic investments to grow our travel, home and energy offerings for members.
“RAA Travel’s revenue grew 37% last year, and we’ll soon be providing South Australians with a trusted and transparent energy plan with RAA Energy to complement our existing home battery and solar offerings.
“We introduced a new, more affordable motor insurance product to give members more options to help them manage their household budget with growing cost-of-living pressures.
“This has helped grow our insurance portfolio by nearly 22,000 policies – meaning we’re helping more members than ever before and further cementing RAA as South Australia’s largest personal lines insurer.
“This strong growth across the board is thanks to a lot of great work from the RAA team to meet our members’ needs – from our patrols, to travel agents, claims team, solar installers, call centre operators and everyone in between.
“It’s also a testament to RAA’s brand and long-time commitment to offering the highest quality products and services – in challenging times more South Australians are turning to RAA because they know they can trust us.
“Our retention rate is also extremely high for the same reason – we reward loyalty and look after our members, and they recognise that and stick with us.”
Mr Reade said RAA continues to be one of the most important and trusted organisations in the State, committed to performance for purpose.
“This year we also launched a new brand campaign featuring our icon in-the-making, Trev the Bee, reinforcing the benefits of belonging to a member-based organisation like RAA.
“Combined with RAA’s advocacy and education, the campaign has helped strengthen and reinforce RAA’s brand recognition and positive sentiment. We undertake regular third-party research which shows RAA continues to be the number one brand and most trusted organisation in South Australia.”
As the largest member-owned organisation in the state, commercial returns benefit members and the community.
Mr Reade said profits are reinvested into improving member offerings and experiences and rebuilding the organisation’s capital base after a record $525M in claims were paid out to members in 2022-23.
“The 2022-23 financial year was challenging for the entire insurance industry and thousands of our members felt the impact of devastating weather events, from hailstorms through to the Murray River flood,” Mr Reade said.
“It’s important we record a profit so we can not only provide greater value to members in the years ahead, but so we can also, quite literally, put some money away for a rainy day.
“The next extreme weather event is inevitable, and we’ll be in a strong position to pay out our members’ claims.”
In the 2023-24 financial year RAA recorded gross revenue of $782.4 million and a Total Operating Result before tax of $5.9 million and a statutory result of $2.1 million profit after tax.