Insurance Australia Group (IAG) completes the acquisition of RACQ’s insurance underwriting business for $855m, with a 90% stake and potential to acquire the remaining 10% after two years. IAG secures a 25-year distribution deal as RACQ continues servicing policyholders through local stores and contact centers.

The deal is expected to boost IAG’s gross written premiums by $1.3bn without impacting operational aspects. RACQ Insurance staff will remain at their headquarters in Eight Mile Plains as IAG takes over claims, products, and pricing. RACQ Managing Director David Carter and IAG CEO Nick Hawkins emphasize a focus on customer experience and community impact.

In May, IAG agreed to acquire RAC’s insurance operations in Western Australia for $1.35bn. The deal includes purchasing all RAC shares for $400m and an initial payment of $950m for a 20-year distribution and brand licensing agreement. This acquisition strengthens IAG’s presence and commitment to the region.

Read more at Yahoo Finance: IAG finalises acquisition of RACQ insurance underwriting unit