Insurance coverage Australia Group (IAG) has concluded the acquisition of the Royal Vehicle Membership of Queensland’s (RACQ) insurance coverage underwriting enterprise.
The deal was first made public in November 2024.
The association has resulted in IAG buying a 90% stake in RACQ Insurance coverage for $855m, with the supply to buy the remaining 10% curiosity after two years below the identical situations.
This settlement additionally encompasses a 25-year distribution deal, positioning IAG as RACQ’s sole companion for insurance coverage underwriting.
As a part of the alliance, RACQ will keep its position serving insurance coverage policyholders through its community of native shops and speak to centres.
The workers of RACQ Insurance coverage, now a part of IAG, will keep at its present headquarters in Eight Mile Plains. IAG assumes duty for dealing with claims, product choices and pricing methods.
This deal is predicted to contribute an extra $1.3bn to IAG’s gross written premiums and isn’t anticipated to result in alterations to the operational elements of IAG’s present insurance coverage portfolio or to the RACQ model inside Queensland, the insurer stated in November.
RACQ managing director and group CEO David Carter said: “The partnership permits RACQ to uphold our dedication to offering trusted, aggressive insurance coverage merchandise whereas creating new profession pathways for a lot of of our folks. We’re proud to companion with an organisation that shares our sturdy give attention to buyer expertise and group affect.”
IAG managing director and CEO Nick Hawkins stated: “As we speak is an thrilling day as we start our partnership with RACQ, supporting its member-first strategy, welcoming round 840 new crew members to IAG and strengthening our dedication to Queensland.
“RACQ Insurance coverage members will proceed to obtain the identical high-quality service from the identical groups and can quickly profit from IAG’s best-in-class expertise, offering an enhanced customer-focused claims expertise and robust underwriting experience.”
In Could this yr, IAG agreed to acquire the insurance coverage operations of the Royal Vehicle Membership of Western Australia (RAC).
This deal, valued at $1.35bn, contains the procurement of all RAC shares for $400m and a $950m preliminary fee to safe an unique 20-year distribution and model licensing settlement for insurance coverage merchandise bearing the RAC model.
“IAG finalises acquisition of RACQ insurance coverage underwriting unit ” was initially created and printed by Life Insurance International, a GlobalData owned model.
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