Rapier, which already manages the AA's £50m financial services business, now controls a total of £70m in AA billings. The agency will work alongside M&C Saatchi, which leads the company's core advertising strategy.
The decision leaves incumbent EHS Brann without any AA business. The Centrica-owned company's relationship with EHS Brann had faltered recently.
When news broke in November that the AA was reviewing, a spokeswoman said: "We've always had a good relationship with EHS Brann, but there have been some local issues that have affected this."
The appointment of Rapier has surprised some in the industry, who thought that the company would spread its marketing business across three agencies.
However, Rapier has had a close working relationship with the AA since it was first appointed in December 2001 and has often advised the company on its marketing strategy, rather than just working on its direct marketing.
In March last year, the agency created its first TV ad for AA Insurance Services.
The review was handled by The Haystack Group. Media planning and buying continues to be managed by Manning Gottlieb OMD.
The AA is hunting a marketing and strategy director following the promotion of Clare Salmon to managing director of financial services (Marketing, December 11).
Salmon's move was part of a restructure at Centrica. She controls all financial services products, including the insurance and lending business.
Managing director of AA Insurance Services Andy Briscoe left the company after his role was scrapped in the restructure.