Australia's RAC records $288.2M profit in FY26
- The Royal Automobile Club of Western Australia reported a record $288.2 million net surplus for fiscal year 2026, driven by a 45% jump in pre-tax insurance earnings.
- Strong insurance earnings of $420.2 million offset rising property expenses and a 42% surge in legal and consulting fees.
- The motoring group is pursuing the $1.35 billion sale of its flagship insurance division to manage climate change and reinsurance risks.
The Royal Automobile Club of Western Australia delivered a record $288.2 million net surplus for the 2026 financial year as strong insurance earnings boosted overall profitability.
The 13% net surplus increase builds on the previous year's record result, driven by higher premium revenues and lower claims across the general insurance division.
"The RAC has justified the sale decision by arguing there is now more risk for its 1.37 million members in owning an insurance business because of the rising cost of reinsurance, climate change and increased regulatory scrutiny," the company stated in its annual report.
The group paid out $900 million on 217,000 claims while spending $24 million on legal fees and $34.5 million for a 60.5% stake in the Perth Surf Park Project.
In May last year, the group agreed to sell its home and motor insurance division to Insurance Australia Group (ASX:IAG) for $1.35 billion.
The Australian Competition and Consumer Commission has twice blocked the transaction, prompting IAG to submit a third application under regulatory rules established in January.
