The Australian Competition and Consumer Commission (ACCC) has cleared Allianz Australia Insurance Limited’s proposed acquisition of the Royal Automobile Association of South Australia’s personal insurance business (RAAI), concluding the deal is unlikely to substantially lessen competition in South Australia for home and contents insurance and motor insurance. The review assessed the closeness of competition between Allianz and RAAI, RAAI’s likely competitive position absent the acquisition, and potential effects on insurance prices, coverage and service offerings. The ACCC found a merged Allianz and RAAI would remain constrained by other insurers, citing Suncorp and Insurance Australia Group (IAG) as having significant South Australian presences and identifying Auto & General (Budget Direct) and Youi as growing competitors that continue to compete on price. It also examined input markets for smash repair, windscreen repair and replacement, and building repair services in South Australia, finding Allianz would be unlikely to worsen prices or supply terms post-transaction given its position relative to other insurers and acquirers of these services. The ACCC noted it will also be considering IAG’s proposed acquisition of RAC Insurance from RAC WA, and said its decision on Allianz and RAAI should not be treated as indicative for that separate transaction.
Australian Competition and Consumer Commission 2025-06-12
Australian Competition and Consumer Commission will not oppose Allianz’s acquisition of RAAI’s South Australian personal insurance business
The ACCC approved Allianz Australia's acquisition of RAAI's personal insurance business, finding it unlikely to reduce competition in South Australia's insurance market. Allianz and RAAI will remain constrained by other insurers like Suncorp and Insurance Australia Group. The decision doesn't set a precedent for IAG's proposed acquisition of RAC Insurance.