Allianz, IAG eye RAC insurance acquisition

The insurer has engaged Barrenjoey to conduct a strategic review of the business.

Allianz SE and Insurance Australia Group Ltd. (IAG) are considering bids for the insurance business of the Royal Automobile Club of Western Australia (RAC), according to sources familiar with the matter, reported Bloomberg.

The insurer has engaged Barrenjoey to conduct a strategic review of the business, as reported by the Australian Financial Review last year.  

A spokesperson for RAC confirmed the review but declined to comment on potential bidders.

IAG stated that it regularly explores growth opportunities but did not address market speculation, whilst Allianz declined to comment.