ACCC opposes IAG's proposed acquisition of RAC Insurance

The ACCC has decided that Insurance Australia Group Limited (ASX: IAG) (IAG) must not put into effect its proposed acquisition of RAC Insurance (RACI). Following an in-depth Phase 2 assessment, the ACCC is satisfied that IAG’s proposed acquisition would have the effect or likely effect of substantially lessening competition in the supply of motor vehicle insurance and in the supply of home and contents insurance in Western Australia. In March 2026, IAG notified the ACCC of a proposal to acquire RACI from RACI Pty Ltd, a wholly owned subsidiary of the Royal Automobile Club of Western Australia Inc. If put into effect, the acquisition would have resulted in IAG underwriting motor insurance and home and contents insurance under the RAC brand in Western Australia. IAG and RACI both supply motor vehicle insurance and home and contents insurance in Western Australia. RACI is the market leader in both motor vehicle insurance and home and contents insurance in Western Australia, where it operates under the RAC WA brand. IAG is one of the two largest personal insurers in Australia. It is a significant competitor in Western Australia and supplies insurance products under a range of brands...