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Highlights

  • The ACCC has decided not to oppose Allianz’s $642 million acquisition of RAA Insurance (RAAI) from the Royal Automobile Association of South Australia.

  • The regulator concluded the transaction is unlikely to significantly reduce competition in the state’s insurance market.

  • The ACCC emphasised that the decision does not set a precedent for its review of IAG’s proposed acquisition of RAC Insurance in Western Australia.

The Australian Competition and Consumer Commission (ACCC) has given the green light to German financial services giant Allianz for its proposed acquisition of the Royal Automobile Association of South Australia’s (RAA) personal insurance arm, RAA Insurance (RAAI). The deal, first announced in December 2024, is valued at $642 million.

The ACCC concluded that the transaction is not likely to substantially lessen competition in the South Australian general insurance market, citing the continued presence and strength of other competitors in the state.

Competition Unlikely to Be Harmed

In its assessment, the ACCC examined whether Allianz and RAAI compete closely, the effectiveness of broader insurance market competition in South Australia, and RAAI’s future competitiveness without the acquisition. It found that while RAAI maintains a significant local brand associated with its motoring club and membership services, other insurers are driving competitive pricing and product coverage in the region.

“While RAAI has a strong brand reputation associated with its motoring club and membership offering, we found that competition in relation to price and coverage in South Australia is being driven predominantly by other insurers, including Suncorp through its AAMI brand, IAG, Auto & General and Youi,” ACCC Commissioner Dr Philip Williams said.

Other Insurer Transactions Still Under Review

The ACCC stressed that its approval of the Allianz-RAAI deal should not be interpreted as indicative of future decisions, particularly in relation to IAG’s proposed acquisition of RAC Insurance from the Royal Automobile Club of Western Australia.

This follows the ACCC’s recent approval of IAG’s acquisition of Royal Automobile Club of Queensland Insurance, signalling ongoing consolidation in Australia’s general insurance market.

Next Steps

With regulatory clearance now secured, Allianz is expected to proceed with finalising the RAAI acquisition. The transaction increases Allianz’s presence in the South Australian market and adds a regional brand to its growing portfolio.

The ACCC will now turn its attention to the proposed IAG-RAC Insurance deal, which is undergoing a separate assessment process.