Allianz Australia has announced its acquisition of the general insurance business of the Royal Automobile Association of South Australia (RAA). In a media release, the giant insurer said the deal, worth $642 million, includes a 20-year exclusive distribution agreement for RAA’s home and motor insurance products.
“We were strongly drawn to partner with RAA due to their compelling strategy and platform for growth, the underlying quality of the business and the relative stability and profitability of the insurance market in South Australia,” said Richard Feledy (main picture, right side), Allianz’s managing director.
The proposed acquisition will convert more than 800,000 RAA members into Allianz customers, expanding the company’s presence in South Australia.
“RAA is a local insurer, and it’s become increasingly difficult to shield our members from the global challenges in the insurance industry,” said RAA’s CEO Nick Reade (main picture, left side), in his firm’s media release about the deal.
Both firm’s releases described the acquisition as a “partnership”.
Allianz will underwrite all of RAA’s general insurance products apart from travel. The insurer will also manage claims under the RAA brand and absorb about 270 employees into its Adelaide team.
The releases said both firms will consult key stakeholders and obtain all relevant regulatory approvals. Subject to those approvals, the transaction is expected to complete mid-2025.
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