Full story: https://grafa.com/en/news/australia/iag-to-seek-public-benefits-approval-for-rac-alliance
-
Insurance Australia Group will apply for public benefits approval following an Australian Competition and Consumer Commission merger determination.
-
The ACCC determined in Phase 2 that the proposed alliance with the Royal Automobile Club of Western Australia should not proceed on competition grounds.
-
IAG will pursue a public benefits determination over approximately 50 business days to secure regulatory clearance for the partnership.
Insurance Australia Group (ASX:IAG) announced it will make a public benefits application to progress its proposed alliance with the Royal Automobile Club of Western Australia after the Australian Competition and Consumer Commission issued a Phase 2 determination opposing the deal on competition grounds.
The regulatory setback follows the competition watchdog's assessment that the partnership should not be put into effect under standard merger control rules.
"The RAC IAG partnership will create long-term benefits for members, customers and communities across Western Australia through IAG’s advanced technology platforms, claims management expertise, financial stability and global reinsurance protection," said IAG Managing Director and CEO Nick Hawkins.
The upcoming public benefits phase allows regulators to weigh broader customer, community, and economic outcomes against competition concerns over an estimated 50 business days.
IAG plans to demonstrate a net public benefit to obtain approval, while stating that RAC will remain local and receive investments to enhance member experience.
Following the announcement, the IAG share price was down at $7.93.
As Australia and New Zealand's largest general insurer, IAG operates core consumer brands, including NRMA Insurance, CGU, SGIO, SGIC, and WFI.
The company recently reported full-year net profit after tax of $1.02 billion on revenue of $17.73 billion for the 2026 financial year.
Comments