Business · Companies · 2 hrs ago
IAG offers commitments to address concerns over proposed RAC alliance
Insurance Australia Group is proposing an insurance alliance with Western Australia's Royal Automobile Club.
IAG says the deal would add $1.2 billion in annual gross written premiums and be earnings-per-share accretive in its first full year.
The Australian Competition and Consumer Commission raised competition concerns about the proposal.
IAG has offered to transfer renewal rights for its NRMA home and motor policies in Western Australia to another insurer.
It also plans to make RAC home insurance available in parts of northern Western Australia, where options are limited, and commit $20 million to community investment over the next decade.
The commitments aim to address competition concerns and improve access to insurance.
The ACCC review is expected to conclude in December 2026; if the alliance is approved, IAG says it will work on integrating the businesses and delivering the proposed benefits.
IAG has offered commitments to address competition concerns raised by Australia’s competition regulator over its proposed alliance with RAC in Western Australia.
The commitments include transferring renewal rights for active NRMA Insurance home and motor policies in the state to another insurer.
IAG also proposes expanding RAC home insurance availability in parts of northern Western Australia and investing $20 million in local communities over the next decade.
The proposed alliance would add $1.2 billion in annual gross written premium, according to IAG.
The ACCC review is expected to conclude in December 2026.
- Who
- Insurance Australia Group (IAG) and the Royal Automobile Club of Western Australia (RAC).
- What
- IAG has offered commitments to address competition concerns about its proposed alliance with RAC.
- When
- IAG reported the commitments on October 13, 2026. The ACCC review is expected to conclude in December 2026.
- Where
- Western Australia, Australia.
- Why
- IAG says the commitments respond to competition concerns raised by the ACCC and will secure benefits for Western Australians.
This story does not have two clearly opposing sides.
IAG updated the market on its proposed RAC alliance and the commitments it offered in response to ACCC competition concerns.
The ACCC review is expected to conclude.
- Annual gross written premium
- $1.2 billion increase expected from the proposed alliance
- Annual pre-tax synergies
- About $100 million targeted after integration
- Integration costs
- $15 million to $25 million annually over the next three years
- Community investment
- $20 million in Western Australian communities over the next decade
- ACCC review
- Expected to conclude in December 2026
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What people are saying
In light of our commitment to RAC and its members, and in response to the ACCC's competition decision, we are offering to transfer renewal rights for our active NRMA Insurance home and motor insurance policies in Western Australia to another insurer.
RAC is a wonderful organisation with a much-loved brand.