Allianz Australia has entered a partnership with the Royal Automobile Association of South Australia (RAA) to acquire the latter’s general insurance business.
The partnership, which also includes a 20-year distribution agreement for RAA’s Home and Motor insurance product lines, is aimed at expanding Allianz’s consumer insurance presence in South Australia.
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The transaction, valued at a gross amount of A$642m ($417.9m), is set to conclude in mid-2025.
The partnership will see Allianz underwrite all general insurance products, excluding travel, and manage claims under the RAA brand.
It is expected to enhance Allianz’s service offerings to RAA’s 825,000 members, leveraging the company’s century-long expertise in the Australian market.
Approximately 270 RAA employees will join the local Allianz Adelaide team as part of the proposed acquisition.
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By GlobalDataThe integration of the two teams is expected to bring together global and local insights to benefit consumers.
Both Allianz and RAA will engage in consultations with key stakeholders and will work towards obtaining all necessary regulatory approvals.
Allianz managing director Richard Feledy said: “Both RAA and Allianz have a rich history of supporting Australian’s for over 100 years.
“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.
“There is also a strong cultural and strategic alignment that is already evident between our organisations, and we look forward to welcoming the RAA team to Allianz.”
RAA CEO Nick Reade said: “By partnering with Allianz, our members will see other benefits too – including new RAA insurance products and services developed under the partnership over time.
“This partnership will help us rebuild our capital base and secure a long-term, reliable revenue stream to reinvest back into our organisation to deliver more for members.”
