The insurers definitely are the dog wagging the tail and it has...

The insurers definitely are the dog wagging the tail and it has always been like that. We are at a point now where capacity to get vehicles repaired in a timely manner is making life harder for insurers so they need companies like AMA to handle volume.

From an outsider looking in AMA was designed to group a lot of revenue to be marketable to a large investor consolidator like what has been happening in the US. AMA nearly pulled that off with the Blackrock sale a few years ago as that would have been harder for the insurers to dictate to someone like Blackrock what price they were going to pay.

That sent the insurers into panic mode with IAG the most disturbed by the Blackrock potential sale that they hit the throttle on plan B to roll out their own network. Having repairers in a strong position is a nightmare that would keep their CEO's awake at night.

AMA buying Capital Smart for near 20 times earning or what ever it was with minimal upside for increasing price was always going to be a tough slog and I feel that Carl has had to come in to try and rightsize a business that was setup as a revenue play.