Allianz Australia’s RAA acquisition to boost market position: S&P

Allianz Australia’s capital adequacy is not expected to be affected by this.

Allianz Australia Insurance Ltd.’s planned A$642m acquisition of RAA Insurance Ltd. is expected to strengthen its position amongst the top four players in Australia’s property and casualty insurance market, according to S&P Global Ratings.

Allianz Australia’s capital adequacy is not expected to be affected by the acquisition, as the group will fully fund the transaction.

The deal includes a 20-year exclusive agreement to distribute home and motor insurance products to members of the Royal Automobile Association of South Australia, which owns RAA Insurance.  

The acquisition, which is subject to regulatory approval and other conditions, is expected to be finalised by mid-2025.