ACCC Scrutinizes Major Motor Insurance Mergers

2

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Stakeholders are urged to present their opinions on these mergers by February 14. The ACCC has scheduled to either finalize decisions or release public statements indicating any concerns by April 24.

Industry experts predict the ACCC’s primary focus will be on IAG’s strategic move to bolster its position in Queensland, especially given RACQ's established presence as one of the state's front-runners in personal insurance products.

According to the ACCC, “IAG and RACQI both provide personal lines general insurance, including home, contents and motor vehicle insurance, and acquire ancillary repair services, including smash repair services, windscreen repair and replacement services, and building repair services.”

The primary objective of the inquiry is to assess the competitive dynamics between the involved parties, measure the influence of other service providers on the proposed new entity, and understand the implications for pricing and service quality in personal insurance lines. Additionally, the inquiry will delve into how IAG's enhanced scale might impact its dealings with supplementary service suppliers.

For the Allianz and RAA agreement, there are concerns about market overlap in key insurance sectors, including home, contents, and car insurance. The ACCC has posed related inquiries for this deal as well.

IAG's proposed $855 million acquisition aims to secure a 90% stake in RACQ's insurance segment, coupled with a potential to purchase the remaining 10% in the coming years. A long-term distribution relationship spanning 25 years is also part of the agreement.

Almost concurrently, Allianz Australia announced its $642 million commitment to acquire RAA's insurance business, which similarly involves a lengthy distribution partnership lasting 20 years.

It is noteworthy that both acquisitions exclude the roadside assistance services and other membership-based activities that RACQ and RAA are widely recognized for.

Inquiries from the ACCC also pertain to whether Queensland and South Australia should be perceived as distinct geographic markets and if the insurers are recognized for competitive pricing, innovation, or aggressive market strategies.

The ACCC is also collecting data on market shares by sectors, upcoming or recent market developments, and entry hurdles for new players.

In line with these developments, letters seeking feedback have been dispatched regarding each proposed acquisition. Detailed information and queries originate from the initial discussions, as outlined in the source content.

Published:Wednesday, 5th Feb 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

EQT Proposes $3.41 Billion Acquisition of AUB Group

08 Nov 2025: Paige Estritori

In a significant development within the Australian insurance industry, Swedish private equity firm EQT has made a takeover offer for AUB Group, valuing the company at A$5.25 billion (US$3.41 billion). This proposal includes a price of A$45 per share, representing a 25.1% premium over AUB's last closing price. The offer follows an earlier bid of A$43 per share, indicating EQT's strong interest in expanding its footprint in the Australian market. - read more

AIA Australia Unveils Innovative Member Insurance Portal

08 Nov 2025: Paige Estritori

AIA Australia has launched a cutting-edge Member Insurance Portal designed to provide a streamlined insurance experience for group insurance customers. This digital initiative aims to optimize the claims process, offering members the ability to track their claims throughout the entire lifecycle, thereby ensuring transparency and simplicity during potentially challenging times. - read more

Australian Insurers Achieve $6.1 Billion Profit Amid Rising Premiums

08 Nov 2025: Paige Estritori

Australia's insurance industry has reported an after-tax profit of $6.1 billion for the year 2024, a figure that is three times higher than the five-year average of $2 billion. This substantial increase is attributed to significant premium hikes and a relatively benign year for natural disasters. - read more

EQT's $3.41 Billion Bid for AUB Group: A Game-Changer in Australian Insurance

31 Oct 2025: Paige Estritori

In a significant development within the Australian insurance sector, Swedish private equity firm EQT has proposed a takeover of AUB Group, valuing the company at A$5.25 billion (US$3.41 billion). This offer represents a 25.1% premium over AUB's last closing price, indicating EQT's strong interest in expanding its footprint in the Australian market. - read more

AIG Australia Penalised for Breaching Insurance Code Obligations

31 Oct 2025: Paige Estritori

The Insurance Code Governance Committee has imposed a $30,000 penalty on AIG Australia for breaching its obligations under the insurance code. The breaches pertain to the insurer's failure to inform customers about delays in handling their complaints and neglecting to notify them of their right to escalate matters to the ombudsman. - read more

Click for more Insurance News