Allianz Australia has entered into a partnership with the Royal Automobile Association of South Australia (RAA) in a deal worth A$$642m ($416m).
The partnership includes the purchase of its general insurance business and a 20-year exclusive distribution agreement for the home and motor insurance product lines of RAA.
Within this partnership, Allianz will underwrite all general insurance products (excluding travel), and manage claims, under the RAA brand. Around 270 RAA employees will transfer to join the local Allianz Adelaide team, under the proposed acquisition. Allianz will bring both global and local expertise to support RAA’s 825,000 members.
Subject to regulatory approvals and other conditions, it is expected the transaction will be completed by mid-2025.
The announcement on 2 December of the Allianz-RAA deal followed that of IAQ and Royal Automobile Club of Queensland (RACQ). On 28 November, IAG announced that it would acquire 90% of RACQ’s existing insurance underwriting business, with an option to acquire the remaining 10% in two years on consistent terms. The consideration amounts to A$855m. Both sides will also enter a 25-year exclusive strategic alliance to provide RACQ general insurance products and services for RACQ members and Queenslanders. RACQ is owned by 1.7m members.