Allianz, IAG considering bid for Western Australia’s top insurer: Bloomberg

Allianz and Insurance Australia Group (IAG) are considering bids for the insurance division of the Royal Automobile Club of Western Australia (RAC), according to a recent Bloomberg article.

A spokesperson for RAC confirmed the review, stating the organisation is always looking to enhance its member experience and services, including insurance, but declined to comment further on potential bidders, Bloomberg reports.

The bidding process puts major insurers in competition as they seek to expand through deals with mutual lenders and automobile clubs in other Australian states.

The Royal Automobile Club of Western Australia provides a range of insurance products, including coverage for cars, homes, caravans, and pets. It reported an after-tax profit of A$105 million ($65.6 million) for the financial year ending in June, with net assets of A$1.13 billion.

In November, IAG announced plans to acquire 90% of the Royal Automobile Club of Queensland’s insurance underwriting business, with an option to purchase the remaining 10% in two years as part of a 25-year distribution agreement.

Allianz, meanwhile, secured a partnership with the Royal Automobile Association of South Australia, acquiring its general insurance business and establishing a 20-year exclusive distribution agreement for select product lines.

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