AA Insurance collected more than $1 billion in premiums in the June-2026 year, but its net profit after tax dropped by over $25 million.
The general insurer is a joint venture between the New Zealand Automobile Association (NZAA) and Vero Insurance. Vero has a 68% shareholding in AA Insurance and the NZAA holds 32%. Vero is owned by Suncorp, the second-largest general insurer across Australia and NZ.
AA Insurance provides home, contents, car and commercial small business insurance. The insurer has over 560,000 customers who have more than 1.1 million insurance policies.
The general insurer received $1.01 billion in premiums, according to AA Insurance’s financial statements for the 12 months ending June 30, which were published by the Companies Office on Tuesday.
Premiums are the total amount of money customers are required to pay for insurance coverage on policies issued by an insurer. Premium revenue for AA Insurance in its 2026 financial year increased by 1.8%, or $18 million, year-on-year.
AA Insurance said it paid out $698 million in claims and other insurance service expenses during its June year, a 7.9% or $50.7 million increase from the $647.3 million the insurer paid out the year before. The insurer didn’t provide details in the report on which specific categories were the biggest drivers behind these costs. Interest.co.nz has asked AA Insurance for more information on this, as well as other details in the report.
Despite the growth in premium revenue, AA Insurance's annual net profit after tax (NPAT) dropped by around 15%, or $21.6 million, to $144.1 million from $170.2 million last year. AA Insurance’s net investment income fell even further, down 48%, or $18.2 million, to $19.2 million.
AA Insurance still increased its annual dividend payout by $30 million to $160 million.
Reinsurance premiums for the insurer dropped to $76 million in the June year, from $107.4 million the prior year. In the report, AA Insurance said it had entered into a multi-year aggregate excess of loss reinsurance contract that commenced on June 30 for a five-year coverage period.
The insurer said the five-year contract will provide “aggregate protection” against natural peril losses over the coverage period.
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