AA Ireland, the Irish insurance and motoring services subsidiary of the quoted UK company generated a 3% increase in sales last year to £38m when currency fluctuations are excluded, and an 8% increase in the number of personal members.

Operating profits were flat at just under £40m as the firm faced higher marketing and staff costs.

Newstalk reported last month that the AA has held discussions with a number of possible buyers about the sale of AA Ireland.

Possible buyers include the Irish private equity firms, FL Capital Partners and Carlyle Cardinal Ireland, in which Enterprise Ireland has a stake.

The AA parent group declined to comment on the sale process yesterday but with its own pre-tax profits falling by two-thirds to £17m last year and with debts of close to £3bn sterling, it’s likely to be motivated to push through with a sale.

AA Ireland employs close to 500 people and provides motor, home and other insurance products, car breakdown services, AA Roadwatch and a range of other travel and accommodation advisory services.

It has operated in Ireland since 1910.