Insurance Australia Group (IAG) has concluded the acquisition of the Royal Automobile Club of Queensland’s (RACQ) insurance underwriting business.  

The deal was first made public in November 2024. 

The arrangement has resulted in IAG acquiring a 90% stake in RACQ Insurance for $855m, with the provision to purchase the remaining 10% interest after two years under the same conditions.  

This agreement also encompasses a 25-year distribution deal, positioning IAG as RACQ’s sole partner for insurance underwriting. 

As part of the alliance, RACQ will maintain its role serving insurance policyholders via its network of local stores and contact centres.  

The staff of RACQ Insurance, now part of IAG, will stay at its current headquarters in Eight Mile Plains. IAG assumes responsibility for handling claims, product offerings and pricing strategies. 

This deal is expected to contribute an additional $1.3bn to IAG’s gross written premiums and is not expected to bring about alterations to the operational aspects of IAG’s current insurance portfolio or to the RACQ brand within Queensland, the insurer said in November. 

RACQ managing director and group CEO David Carter stated: “The partnership allows RACQ to uphold our commitment to providing trusted, competitive insurance products while creating new career pathways for many of our people. We are proud to partner with an organisation that shares our strong focus on customer experience and community impact.” 

IAG managing director and CEO Nick Hawkins said: “Today is an exciting day as we begin our partnership with RACQ, supporting its member-first approach, welcoming around 840 new team members to IAG and strengthening our commitment to Queensland. 

“RACQ Insurance members will continue to receive the same high-quality service from the same teams and will soon benefit from IAG’s best-in-class technology, providing an enhanced customer-focused claims experience and strong underwriting expertise.” 

In May this year, IAG agreed to acquire the insurance operations of the Royal Automobile Club of Western Australia (RAC).  

This deal, valued at $1.35bn, includes the procurement of all RAC shares for $400m and a $950m initial payment to secure an exclusive 20-year distribution and brand licensing agreement for insurance products bearing the RAC brand.