IAG today announced the completion of its $855 million acquisition of RACQ’s insurance underwriting business, and the start of a long-term distribution arrangement. 

IAG CEO Nick Hawkins says the alliance is “a significant step” in the insurer’s strategy to grow its retail business. 

“Today is an exciting day as we begin our partnership with RACQ, supporting its member-first approach, welcoming around 840 new team members to IAG and strengthening our commitment to Queensland,” he said.

IAG has acquired 90% of the shares in RACQ Insurance, with the option to buy the remaining 10% in two years. The deal includes a 25-year distribution agreement and sees IAG become RACQ’s exclusive partner for insurance underwriting.

The Australian Competition and Consumer Commission approved the acquisition in May.