The new partnership brings together two organisations deeply aligned to a shared commitment to building more resilient and safer communities and supporting affordable and accessible insurance for all Queenslanders, now and into the future.

RACQ Managing Director and Group CEO David Carter said the partnership builds on RACQ’s successful 50-year insurance history and leverages the benefits which come from IAG’s scale, innovation, and diversification, as well as their experience working with other motoring clubs over many years.

“We are very excited about the benefits for our members who trust us with their insurance needs,” he said.

Mr Carter said the partnership brought together the best of RACQ and IAG.

“RACQ is one of the strongest and most trusted brands in the country, with excellent distribution and member services across our store and agency networks, and locally based call centre,” he said.

“IAG is a leading claims manager, underwriter, and provider of innovative insurance solutions. By working together, we will strengthen and broaden RACQ Insurance’s proposition in the market providing members with a wider range of products and leading digital capabilities.

“A key consideration of this partnership was the career and development opportunities for our people. IAG is excited by the calibre and talent of our people.”

IAG Managing Director and CEO Nick Hawkins said the new alliance with RACQ builds on IAG’s ability to provide leading insurance products to Queenslanders.

“IAG has a well-established presence in Queensland through our trusted insurance brands, and we are excited to now help protect and serve RACQ’s members.

“The transaction is a true partnership between IAG and RACQ. It builds on our proven track record of working collaboratively with leading member motoring organisations that share our values.”

RACQ’s commitment to members

Mr Carter said this partnership allows RACQ to strengthen its support for members in the moments that matter and enables the Club to invest in and accelerate its 2032 Strategy which includes developing new products and services that help members with their mobility and home energy needs.

“RACQ will receive upfront cash consideration of $855m and will initially retain a 10% shareholding in RACQ Insurance (Limited), in addition to an ongoing revenue stream to support RACQ’s marketing and distribution activities,” he said.

“Post sale, we expect our Insurance division will continue to be a material contributor to the Group’s financial performance.

“Proceeds from the sale will be allocated to initiatives that will drive a positive future for our organisation, our members, and Queenslanders.

“We recognise the ongoing cost-of-living pressures facing our members and completion of this transaction will see us use some of the funds to reduce the price of our roadside assistance products for members.

“RACQ Insurance policy holders can be assured their existing insurance policy remains unchanged, and it’s business as usual. This partnership will not compromise or cause any delays for members with a claim underway.”

RACQ’s other business including Roadside Assistance, RACQ Bank, RACQ Solar and our joint venture travel arrangement with Members Travel Group (MTG) are not directly impacted by this change.

RACQ commitment to Queenslanders

RACQ President and Chair Leona Murphy said the partnership represents an exciting new era for the Club.

“This transaction enables us to grow and expand our market-leading insurance solutions to more Queenslanders and invest in our members by reducing the price of Roadside Assistance.

“It will also see us increase our investment further in the work we do in our communities by focusing on solving some of Queensland’s biggest challenges in the areas of road safety, community resilience and making mobility more accessible for all Queenslanders,” she said.

“To this end, we will invest in new ways to address road safety, with the aim to reduce the road toll in Queensland and we will increase our focus and investment in delivering local projects with real impact that help Queenslanders deal with the increasing frequency and severity of natural disasters.

“At the same time, we continue our work to create a simpler and more efficient organisation that enables us to participate in new and exciting products and markets, helping our members with their transition to low-carbon transport and home energy solutions, ensuring no one gets left behind,” she said.

“We will continue to keep our members updated as we reach key milestones in the transaction process.”

The partnership is subject to regulatory approvals.

Transaction highlights

• RACQ will maintain the role of marketing, and sales and distribution through its stores, digital channels and via its locally based call centre, and will receive remuneration under the 25-year strategic distribution partnership
• IAG will be responsible for underwriting, claims management and product and pricing
• Eight Mile Plains will remain a key base for RACQ employees transitioning to IAG
• IAG will have continued use of the RACQ Insurance brand under the distribution partnership with RACQ responsible for marketing and brand management
• RACQ will retain a 10% equity interest in RACQ Insurance as part of the $950m deal, maintaining an alignment of interests as the partnership develops
• IAG has an option to acquire the remaining 10% two years after completion. RACQ can choose to receive equity in IAG as consideration upon exercise of the option

RACQ Media enquiries:

Manager Corporate Communications, Ashleigh Paterson 0401 051 761

General Manager Corporate Communications, Nadia Farha 0408 535 993