IAG Boosts Queensland Presence With $855m RACQ Acquisition
Insurance Australia Group (IAG) has bolstered its presence in Queensland with a significant acquisition. The company has purchased a 90% stake in Royal Automobile Club of Queensland's (RACQ) car insurance underwriting business for $855m. This deal, which includes a 25-year distribution agreement, will see IAG become RACQ's sole car insurance underwriting partner.
RACQ will continue to serve its policyholders through its local stores and contact centers, maintaining its brand and role. The staff at RACQ Insurance will remain at their current headquarters in Eight Mile Plains, with IAG taking over claims, product offerings, and pricing strategies. This acquisition is expected to contribute an additional $1.3bn to IAG's gross written premiums without affecting its current car insurance portfolio or the RACQ brand in Queensland.
IAG managing director and CEO Nick Hawkins expressed support for RACQ's member-first approach and welcomed around 840 new team members to IAG. RACQ managing director David Carter stated that the partnership allows RACQ to uphold its commitment to providing trusted, competitive car insurance quotes and creates new career pathways for its people. This deal follows IAG's acquisition of the insurance operations of the Royal Automobile Club of Western Australia (RAC) in May 2025 for $1.35bn, including a 20-year distribution and brand licensing agreement.
IAG has the option to purchase the remaining 10% interest in RACQ Insurance after two years under the same conditions. This strategic move strengthens IAG's position in Queensland while ensuring RACQ policyholders continue to receive the same level of service and brand experience.
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