- AA said Tuesday its motor insurance division delivered 'strong' growth, but its roadside breakdown business continued to stutter.

In insurance, motor policies grew 16% at 731,000, and its house insurance policy book returned to growth, rising 1.5% to about 830,000.

New AA breakdown paying members declined by 2% to 3.21m with retention just over 80% as at 31 January, while average income per paid member rose to about £162, up 3% from a year earlier.

The company blamed the decline in paid members on 'the re-phase our summer marketing campaign as well as the impact of regulatory pressures and continued competitor activity.'

The company said, however, that it would target a broadly flat membership base in 2020 and return this to growth by 2021.

Capex and earnings for the full year were both expected in-line with guidance.

Underlying earnings (EBITDA) was expected to be above £340m, in line with previous guidance of about £335m to £345m, the company said. 'We expect total capex spend for 2019 to be broadly in line with our guidance of £105m, reflecting the investments we are making in our people, products, systems and operations to reposition the AA as the pre-eminent membership services organisation.'

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