- Allianz purchases general insurance business of RAA, expanding its consumer insurance presence in South Australia.
- 20-year exclusive distribution agreement for the General Insurance product lines1 of RAA.
- Transaction worth gross AUD$642 million (including excess capital and subject to completion adjustments) and expected to complete in mid-2025.
Allianz Australia plan and protect
17 December 2024
Allianz Australia is excited to announce today it has entered into a partnership with the Royal Automobile Association of South Australia Incorporated (RAA). The partnership, worth AUD$6422 million, includes the purchase of its general insurance business and a 20-year exclusive distribution agreement for the Home and Motor insurance product lines of RAA.
Within this partnership, Allianz will underwrite all General Insurance products (excluding travel), and manage claims, under the RAA brand. Allianz will also welcome approximately 270 RAA employees, who will transfer to join the local Allianz Adelaide team, under the proposed acquisition. As a leading global insurance brand3, with over 100 years’ experience in Australia, Allianz will bring both global and local expertise to support RAA’s 825,000 members.
Allianz Managing Director, Richard Feledy, 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.”
RAA Chief Executive Officer, Nick Reade, said: “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 will obtain all relevant regulatory approvals.
Subject to regulatory approvals and other conditions, it is expected the transaction will complete mid 2025.
References:
- Excluding travel
- Including excess capital and subject to completion adjustments
- Oct 2024 – Interbrand’s Best Global Brands – Allianz was the number one insurance company, and ranked 29th of all Global Brands.
About Allianz Australia
Allianz Australia has been securing the future of our customers in Australia since 1914. We deliver a wide range of personal and commercial insurance products and services to more than 3 million policyholders. We also provide support for workers compensation insurance to around 25% of the top 200 ASX companies, making us one of the leading workers compensation insurers in Australia.
Allianz Australia Limited is a wholly owned subsidiary of the worldwide Allianz Group. The Allianz Group is one of the world's leading insurers and asset managers with corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life, and health insurance to assistance services, credit insurance and global business insurance. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index.
Allianz Australia Limited is a wholly owned subsidiary of the worldwide Allianz Group. The Allianz Group is one of the world's leading insurers and asset managers with corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life, and health insurance to assistance services, credit insurance and global business insurance. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index.
Disclaimer
This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.
Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.
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