RAA has announced a new partnership with Allianz Australia with plans to improve offerings and value for RAA members. Valued at $642M, the deal includes Allianz’s acquisition of RAA’s general insurance business, and also a 20-year exclusive distribution agreement for the Home and Motor insurance product lines of RAA.
With over 100 years of experience in Australia, Allianz will be managing claims and underwriting insurance policies under the RAA brand, bringing their expertise to over 800,000 RAA members. Allianz will also welcome about 270 RAA employees under the terms of the deal. These insurance workers will transfer to join the local Allianz Adelaide team.
The deal promises plenty of mutual benefit for both parties. While RAA will manage the marketing and distribution of insurance products, Allianz will oversee aspects such as product development, pricing, claims, and underwriting.
This arrangement will combine the skills and resources of both companies to continue providing quality service to RAA members, a model endorsed by Nick Reade, the Chief Executive Officer for RAA. Regarding the deal, he said that “The driving principle was to develop a long-term model for insurance that was better for our members and our people – and this partnership delivers that”.
Reade also assured members that they would maintain their access to RAA-approved repairers and continue receiving service from South Australians.
With an upfront purchase price of $642M and additional payments linked to business performance and growth, this partnership will help RAA rebuild their capital base and secure a long-term, reliable revenue stream. Reade said that the company would be reinvesting the revenue back into the organisation to continue enhancing their products and services for members.
On the side of Allianz Australia, Managing Director Richard Feledy welcomed the integration of RAA employees and members into the Allianz family. “For over 100 years, we’ve been helping Australians protect what matters most – whether it’s their homes, cars or businesses. We’re excited to expand our already-strong presence in South Australia, and bring our global expertise and local knowledge to support RAA’s customers”.
Pending regulatory approvals and stakeholder consultations, the transaction is slated for mid 2025. This partnership with Allianz signifies the beginning of a new chapter for RAA, one that promises enhanced services and products for their enormous customer base.
This news comes follows to major announcements from RAA earlier in the year. Back in June, they announced the development of a new technical centre in West Croydon, scheduled to open in early 2026. This new location will provide members with automotive services and roadside assistance teams, the child safety centre, drive school, parts of travel and distribution, and solar and battery services.
Then, in mid-November, they expanded their repair network to include electronic and hybrid vehicles. With more than 10,000 EVs registered in Australia, a number projected to reach 125,000 by 2030, this expansion further demonstrated RAA’s forward-thinking commitment to providing quality service to motorists across Australia.
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