The Advertiser reports that the RAA has made an $18.9m loss and has sacked 78 staff after making a deal Allianz Australia.
The deal worth $642 million, gives Allianz control of RAA’s home and motor insurance book for 20 years.
Last year’s annual report showed the top 12 executives, including Mr Reade, finance chief Tim White and former RAA Insurance head Tara Page, shared a 46 per cent pay rise, lifting their total remuneration to more than $7.7 million. Bonuses tied to the completion of the Allianz sale were a key factor.
The staff have been cut from finance, human resources, marketing, communications, and technology.
The $18.9m loss was attributed to the cost required to implement a new insurance technology platform.
Last year the organisation flagged a voluntary redundancy program for its 1,000 staff.
However, because the structural changes required further cuts, they moved to redundancies to reach their targets by October this year.
RAA retains ownership of its brand and distribution network, meaning members will continue to buy RAA-branded cover while Allianz assumes the underwriting risk and handles claims.