ACE.L Regulatory News (ACE)

22 Mar 2006 07:01

Accident Exchange Group PLC22 March 2006 22nd March 2006 Accident Exchange Group Plc ABI General Terms of Agreement ("GTA") Rate Review - Increase in Daily Hire Rates Accident Exchange Group Plc, the prestige replacement vehicle specialist, isdelighted to report that agreement has been reached at the GTA TechnicalCommittee on the annual rate increase for credit hire charges defined within theGTA which will apply from April 2006 to July 2007. The Board of Accident Exchange Group Plc is extremely pleased with the outcomeof the negotiations and estimates that these new rates approximate to a weightedday rate increase of 2.57% (if we compare the new tariff bandings to all rentalactivity over the whole of the last 12 months) and to a weighted rate increaseof 3.57% (if we compare the new tariff to all rental activity generated inDecember 2005 alone). The rate negotiation process has been ongoing since July 2005 and has nowconcluded with agreement on a standard matrix of vehicle groupings and astandard set of rates which will apply globally to all subscribers of the GTA.This will therefore eliminate the historic variance in GTA member pricing thathistorically penalised some of the older GTA subscribers who were restricted tolower rate tariffs and which therefore unfairly benefited newer entrants to theGTA who had been able to establish a premium pricing position. Commenting on the rate review Steve Evans, Chief Executive, said: "The outcome of the rate review is extremely positive for Accident Exchangefollowing a period when there was speculation about the sustainability of rates. "We now have absolute clarity on pricing until July 2007. We have also seen thewide range of rates historically enjoyed by competitor GTA suppliers simplifiedinto a standard tariff. More specifically, though, the net result will see aweighted increase to our existing tariff from April 1st 2006." Ends For more information please contact: Steve Evans, Chief Executive, Accident Exchange Group plc Tel: 08700 116 719 Martin Andrews, Finance Director, Accident Exchange Group plc Tel: 08700 053 649 Jonathon Brill/Billy Clegg, Financial Dynamics Tel: 020 7831 3113 Notes to Editors: The GTA Technical Committee is a forum which comprises representatives of theAccident Management Association ('AMA'), National Association of Credit HireOperators ('NACHO') and representatives of the Association of British Insurers('ABI') and which deals with the operation and evolution of the protocolsbetween subscribing ABI Insurers and AMA member credit hire operators. This information is provided by RNS The company news service from the London Stock Exchange