IAG.AX, IAUGF, IAUGY: ACCC Escalates Review of IAG’s Proposed RAC Insurance Acquisition

ACCC Escalates Review of IAG’s Proposed RAC Insurance Acquisition

Apr 17, 2026 05:48 UTC

IAG.AX, IAUGF, IAUGY

Medium term

The Australian Competition and Consumer Commission (ACCC) has determined that the proposed acquisition of RAC Insurance (RACI) by Insurance Australia Group Limited (IAG) requires an in-depth Phase 2 assessment. The regulator expressed concerns that the transaction could substantially lessen competition within the Western Australian insurance sector. Both IAG and RACI, which is owned by the Royal Automobile Club of Western Australia, provide motor, home, and contents insurance in the region. Under the proposed structure, IAG would underwrite these products while they continue to be offered under the RAC brand. In addition to the insurance products, the ACCC is examining how the merger might impact smash repair services. IAG has acknowledged the regulator's decision and stated it remains confident in its position, pledging to work constructively with the ACCC throughout the process. The regulator has invited submissions regarding the Phase 2 Notice until May 4, 2026. The Phase 2 assessment is expected to take up to 90 business days, although this timeline may be subject to extensions. Following the announcement, IAG.AX shares traded slightly lower at A$7.45, representing a 0.47% decline.

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ACCC Escalates Review of IAG’s Proposed RAC Insurance Acquisition

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