RAA is set to partner with global insurance firm Allianz’s Australian business under a 20-year partnership, which RAA says will deliver more benefits and greater value for members.
Throughout its 100-year history in insurance, RAA has partnered with a number of providers to deliver quality and trusted insurance products for its members.
Under the new partnership, Allianz Australia Insurance Limited will underwrite RAA Insurance policies under the trusted RAA brand. All RAA Insurance staff will be able to transition to Allianz and remain in South Australia.
In a press release RAA says its members will benefit from new RAA insurance products and services developed under the partnership over time.
RAA Chief Executive Officer, Nick Reade, said the 20-year partnership would enable RAA to reduce its exposure to risk, rebuild its balance sheet and deliver more value for its 825,000 members.
“The driving principle was to develop a long-term model for insurance that was better for our members and our people – and this partnership delivers that,” Reade said.
“RAA is a local insurer, and it’s become increasingly difficult to shield our members from the global challenges in the insurance industry.
“We undertook a review of our operating model to determine the best and most sustainable way to provide insurance to members and that’s why we’re partnering with an insurer that is part of a leading global insurance group.
“We share a deep commitment to customer service, employee experience and positive social and environmental impact – and they already have a strong local presence here in Adelaide.”
Under the partnership, RAA will be responsible for the marketing and distribution of insurance products, while Allianz will be responsible for product, pricing, claims and underwriting.
“We will get the benefits of partnering with a market-leading insurer that is part of a global insurance group, while retaining the best parts of RAA,” Mr Reade said.
“Our members will continue to have access to our award-winning insurance products with the same excellent level of service we’ve always offered, under the trusted RAA brand.
“Members can still choose to get their cars fixed at RAA-approved repairers and, when members pick up the phone, they can still speak to South Australians.
“By partnering with Allianz, our members will see other benefits too – including new RAA insurance products and services developed under the partnership over time.”
Reade said the membership organisation had negotiated an upfront purchase price of $642 million, plus additional payments linked to growth and business performance.
“This partnership will help us rebuild our capital base and secure a long-term, reliable revenue stream to reinvest back into our organisation to deliver more for members,” Reade said.
“It means we can continue to deliver on RAA’s purpose – to be better for members, better for our community.”
RAA President and Chairman, Kathy Gramp, said the partnership would enable RAA to make a substantial contribution to South Australia.
“As a member organisation, we’re deeply committed to the long-term success of RAA and our role as a member and community advocate.
“We’re currently developing our investment strategy and will consult with members and the community on the things that matter most to them.”
Allianz Australia is part of the Allianz Group, regarded as the world’s number one insurance brand.
Allianz Australia Managing Director, Richard Feledy said: “We’re thrilled to welcome RAA employees and members to Allianz. For over 100 years, we’ve been helping Australians protect what matters most – whether it’s their homes, cars or businesses. We’re excited to expand our already-strong presence in South Australia, and bring our global expertise and local knowledge to support RAA’s customers.”
Subject to regulatory approvals and other conditions, the transaction is expected to be completed in the middle of 2025.