Insurance Australia Group just dropped A$855 mn to secure 90% of Royal Automobile Club of Queensland’s underwriting arm.
The purchase came bundled with a 25-year deal making IAG the exclusive partner for RACQ’s insurance products. In two years, IAG can grab the remaining 10% on the same terms.
Nick Hawkins, the company’s chief exec, framed the move as fuel for its retail expansion. He pointed to IAG’s history of teaming with large membership-driven groups, saying the tie-up fits neatly with that playbook.
The workforce angle matters too. About 840 staff come over with the transaction, strengthening IAG’s presence in Queensland.
On the other side, RACQ chief David Carter pitched the alliance as continuity with a twist. He said members keep access to trusted and competitive cover, while staff gain new career routes inside a bigger insurance ecosystem.
The partnership allows RACQ to uphold our commitment to providing trusted, competitive insurance products while creating new career pathways for many of our people
David Carter, CEO and managing director, RACQ
It’s a long-term bet. A local insurer with scale bolstered by fresh capital, and a member group leaning on that reach. The deal binds both sides for decades, which in insurance is rare air.
