CANBERA (dpa-AFX) - The Australian Competition and Consumer Commission (ACCC) has determined that Insurance Australia Group Limited's (IAUGF,IAUGY,IAG.AX) proposed acquisition of RAC Insurance (RACI) could substantially lessen competition and will therefore undergo an in-depth Phase 2 assessment.
RACI, owned by the Royal Automobile Club of Western Australia (RAC), and IAG both supply motor insurance and home and contents insurance in Western Australia. The acquisition would see IAG underwriting these products under the RAC brand. The ACCC is also examining potential impacts on smash repair services.
The regulator emphasized that it has not reached a conclusion on the issues and will continue its assessment during Phase 2. Submissions in response to the Phase 2 Notice are invited by 4 May 2026.
In a separate statement, IAG acknowledged the ACCC's decision to proceed to Phase 2 of the review of its proposed alliance with RAC to provide general insurance products and services to RAC members and the wider Western Australian community.
IAG said it remains confident in its position and will continue to work constructively with the ACCC throughout the process. The Phase 2 assessment is expected to take up to 90 business days, subject to any extensions.
IAG.AX was trading at A$7.45 down A$0.03 or 0.47%.
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