HomeServe drives off with AA division
Home emergency repairs business HomeServe has come to the rescue of the AA by acquiring its Home Emergency Services policy book for an undisclosed sum.
The AA has had a tough year in which it has lost its executive chairman and 45% of its market value. Its new chief executive, Simon Breakwell, wants to focus on its core business and has agreed to sell off this division.
The acquisition, which will also see 70 AA plumbing and gas engineers move over to join HomeServe’s 1,000-plus strong national network of directly employed engineers, further strengthens HomeServe’s position in the Home Assistance market.
Greg Reed, chief executive of HomeServe Membership, said: “AA is a marquee brand and they have built a strong business offering good products with a key focus on service. We look forward to welcoming these Customers to HomeServe.”
HomeServe will take on 70,000 stand-alone AA Customers from May next year and provide a claims fulfilment service for customers of the AA’s ongoing home emergency cover which is sold via banking relationships and as add-ons to other home insurance policies.
It will operate the business under the AA brand for the next three years.
The Walsall-based group has completed the deal through its HomeServe Membership business, which already provides nearly half of the group’s £660m annual revenues. The transaction is expected to close in early 2018.
