Allianz Australia says about 300 RAA employees are joining its business following the purchase of the SA motoring club’s insurance underwriting operations.

The $642 million transaction includes a 20-year distribution agreement, with RAA remaining responsible for marketing of products that continue to be offered under its brand.

The deal, announced last December, took effect last Tuesday after it was cleared by the Australian Competition and Consumer Commission.

“We are looking forward to the opportunities that lie ahead in bringing together Allianz’s global and local insurance expertise with the trusted RAA brand,” Allianz Australia MD Richard Feledy said.

RAA says as a state-based insurer it was increasingly difficult to shield its membership of about 830,000 people from challenges faced by insurers around the world.

The group was advised by The Bridge International, with which it has a long-term relationship, when seeking options for the insurance operations.

“This result protects and future-proofs the RAA brand for 20 years, produces an increasingly positive experience for RAA members and a better and brighter future for RAA,” recently retired chair Peter Siebels said.