AA acquires Go Travel Insurance

26 March 2007

AA Insurance has significantly expanded its travel insurance business with acquisition* of Drakefield Insurance Services Limited, a broker that trades under the Go Travel Insurance and 1 Stop Travel Insurance brands. The combined business has around 360,000 policies in force.

Drakefield was formed in 1998 and employs 50 people at its Basildon offices and call centre. Its strength lies in its online presence and it has become a leading travel insurance brand, offering annual and single trip policies.

The deal was signed by Kevin Sinclair, managing director of AA Insurance and Christian Young, chief executive officer of Drakefield. Christian Young will continue to run the business, joining the management team and reporting to Kevin Sinclair.

Says Kevin Sinclair:

"The travel insurance market is developing quickly and this purchase provides an exciting opportunity for AA Insurance to significantly expand its own trusted brand in this sector."

He added that AA Insurance has no plans to make significant changes to Drakefield's operation or to integrate staff into the wider AA business.

"The AA and Go Travel Insurance brands are complimentary to one another and we will invest in both. Our aim is to become a leading provider of travel insurance," Kevin Sinclair says. "Drakefield reflects our own business ethos and we regard their staff to be critical to the success of our investment. The company continues to be based at Basildon, Essex."

The AA, which is owned by CVC/Permira, is one of the best-known brand names in the UK and is the premier roadside rescue organisation with 15 million members. Its headquarters are in Basingstoke, Hampshire.ÊAA Insurance, which is regulated by the Financial Services Authority, was formed in 1967 and is BritainÕs biggest car and home insurance broker with 2 million car, home and travel insurance customers.Ê It also offers caravan, classic car, life, personal injury, motorcycle, pet and commercial insurance.

AA Insurance employs around 1,400 staff at its Basingstoke office and at call centres in Newcastle and Cardiff.

*Contracts were exchanged on 23 March, subject to completion

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