Latest news with #RobSlocombe
Yahoo
16-05-2025
- Automotive
- Yahoo
IAG seals $1.35bn deal to acquire RAC WA insurance business
Insurance Australia Group (IAG) has agreed to acquire the insurance business of the Royal Automobile Club of Western Australia (RAC), along with a 20-year exclusive distribution and brand licensing agreement for RAC-branded insurance products. The total consideration for the deal stands at $1.35bn, which includes $400m for the acquisition of 100% of RAC shares and an upfront payment of $950m to enter the exclusive distribution agreement. The shares value is based on the expected net tangible asset value at the time of completion. The transaction will be funded through IAG's existing surplus capital, debt and its organic capital generation capabilities. This move is expected to improve IAG's gross written premium (GWP) by approximately $1.5bn. IAG has assured that its existing insurance business and brands in Western Australia (WA), as well as the RAC brand, will remain unchanged. The transaction is anticipated to be earnings per share 'accretive' to IAG shareholders from the first full year post-completion. This deal is due to be finalised in the first half of the 2026 calendar year (H1 2026), contingent on regulatory approvals and other customary conditions including clearance from Australian Competition and Consumer Commission (ACCC). RAC Group CEO Rob Slocombe said: 'IAG brings national scale, global reinsurance capability and industry-leading technology to support RAC members, along with a deep understanding of member-focused organisations. 'The partnership will contribute to our organisation's purpose, vision and mission of being the driving force for a better Western Australia, providing a safer, sustainable and connected future.' IAG managing director and CEO Nick Hawkins said: 'We are excited to partner with RAC to help protect and serve more Western Australians. RAC is a highly trusted institution with a quality insurance business and strong member relationships. This partnership lays a solid foundation for continued commitment to Western Australia, the nation's top-performing economy.' This acquisition follows IAG's November 2024 agreement to purchase a 90% stake in the Royal Automobile Club of Queensland's insurance underwriting business. However, in February this year, the ACCC expressed concerns regarding the potential impact of the deal on personal lines general insurance and ancillary repair services. "IAG seals $1.35bn deal to acquire RAC WA insurance business " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
West Australian
15-05-2025
- Automotive
- West Australian
RACWA drops bombshell with $1.35b deal to sell insurance business and enter 20-year IAG partnership
The Royal Automobile Club of WA will sell off its insurance business and enter into a decades-long partnership with Australia's biggest insurance group in a deal worth more than $1.3 billion as it battles a rising number of claims and increasing regulation. RACWA will collect $400 million from the sale of RAC Insurance and a further $950m under a 20-year exclusive distribution agreement covering its branded home, motor and niche insurance products. The terms of the deal with IAG were revealed on Thursday, with RAC saying the biggest shake-up in the WA motoring mutual's 120-year history was borne from an increasingly complex regulatory environment, higher claims volumes and expenses, and rising reinsurance costs. It was also being required to hold larger capital reserves for claims and natural disasters. RAC will continue to distribute general insurance products under the RAC Insurance brand while IAG will take on underwriting, claims management, product development and pricing. Chief executive Rob Slocombe said the deal with IAG — which also operates NRMA Insurance, CGU and WFI — would give RACWA national scale, global reinsurance capability and leading technology to support its 1.3 million members. 'They have the experience needed to manage increasing volatility and improve the insurance products and services we provide,' Mr Slocombe said. 'This will also enable us to continue to invest in member services, advocacy and community initiatives. 'As a result of this partnership with IAG, we will continue to work together to ensure all RAC members have access to leading insurance products and an excellent claims experience.' 'The partnership will support RAC to deliver for our members, employees, and all Western Australians through continued access to innovative insurance products and services provided locally under the RAC brand, to safeguard their future for years to come.' More to come
