AA and Saga axe claims company
The AA and Saga have dropped the Bath-based accident claims company Helphire.
Acromas - the parent company of the two groups - had been one of the firm's five biggest customers, providing around 11% of its total sales.
The claims company said it was still negotiating terms with Acromas, adding it was unsure whether it could do any further business with either company.
The news follows a bad year for Helphire, with the company losing £67m in the first half of the last financial year and £82m in the second. Further costs were incurred by a £15m restructuring programme and a £29 million write-down in the estimated value of claims it was pursuing. The business made pre-tax losses of £59.3 million in the six months to December 31.
Chief financial officer Ian Wardle said the group was in "much better shape financially, organisationally and operationally" than six months earlier despite the costs and developments.