IAG offers NRMA insurance rights for approval

• Insurance Australia Group offered to sell active NRMA home and motor policy renewal rights in Western Australia to satisfy competition concerns.
• The structural concession aims to secure approval for its proposed $1.35 billion general insurance alliance with RAC WA.
• IAG stated the commitments will allow the deal to deliver public benefits like expanded coverage and community resilience funding in Western Australia.

Insurance Australia Group (ASX:IAG) has submitted a package of competition remedies to the Australian Competition and Consumer Commission to gain regulatory approval for its strategic alliance with the Royal Automobile Club of Western Australia.

The insurer is seeking clearance for a 20-year general insurance partnership originally announced in May 2025 after competition regulators raised market concentration concerns.

“In light of our commitment to RAC and its members, and in response to the ACCC’s competition decision, we are offering to transfer renewal rights for our active NRMA Insurance home and motor insurance policies in Western Australia to another insurer,” said IAG Managing Director and CEO Nick Hawkins.

Alongside the policy sale, IAG pledged $20 million over ten years for regional community resilience programmes and committed to improving home insurance availability in northern Western Australia.

IAG stated that the regulatory public benefits review process is expected to conclude by December.

Following the announcement, the IAG share price was up at $8.42.

The underlying deal includes a $1.35 billion transaction to acquire RAC Insurance and manage products for RAC's 1.3 million members.

IAG stated that the alliance is expected to generate approximately $100 million in pre-tax synergies once integration is completed.