IAGs Acquisition of RACQ Insurance Approved by ACCC

The Australian Competition and Consumer Commission (ACCC) has approved Insurance Australia Group's (IAG) acquisition of a 90% stake in RACQ Insurance (RACQI), concluding that the deal poses little risk to market competition. Both companies offer general insurance products, primarily in Queensland. The ACCC determined that the acquisition would not substantially lessen competition, as several strong competitors, including Suncorp, Allianz, and QBE, remain in the market. The investigation found that RACQI has been losing market share since 2019 and lacks competitive pricing or distinctive coverage offerings. As a mutual organisation, RACQI faces financial constraints and elevated exposure to natural hazard risks, limiting its competitiveness. The ACCC also assessed impacts on related repair service markets and found no significant threats to competition. The decision applies solely to this acquisition and does not reflect outcomes for other ongoing merger reviews, such as Allianz’s bid for RAA Insurance. RACQ’s roadside assistance and membership services are not part of this deal.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com