Allianz has acquired the general insurance business of the Royal Automobile Association of South Australia Incorporated (RAA), expanding its consumer insurance presence in South Australia.
The insurer’s partnership with the RAA, worth AUD$6422 million, also includes a 20-year exclusive distribution agreement for the Home and Motor insurance product lines of RAA.
Within the deal, Allianz will underwrite all General Insurance products (excluding travel), and manage claims, under the RAA brand.
As part of the proposed acquisition, roughly 270 RAA employees will transition to Allianz’s Adelaide team. Allianz is committed to leverage its international and local expertise to support RAA’s 825,000 members.
Richard Feledy, Allianz Managing Director, said: “We are thrilled to announce our partnership with RAA, South Australia’s leading insurer and a beloved and respected brand. Both RAA and Allianz have a rich history of supporting Australian’s for over 100 years.
“Our commitment to delivering exceptional value, and caring for our customers and members, is at the heart of this collaboration. 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.”
Nick Reade, RAA Chief Executive Officer, commented: “We are pleased to enter into this agreement with Allianz. As the world’s number one insurance brand we are confident Allianz’s global insurance expertise and scale will greatly benefit our 825,000 members.”
Both companies will go through a process of consulting with key stakeholders and securing all necessary regulatory approvals before proceeding with the transaction, which is expected to be completed mid 2025.
