IAG says its acquisition-led growth strategy is delivering results and it anticipates an immediate earnings boost from RACQ Insurance.

Last week, the group raised its 2025-26 insurance profit outlook by $100 million after closing its $855 million deal for the insurance portfolio of Queensland motoring club RACQ on September 1.

IAG has another major deal in the pipeline – its $1.35 billion purchase of WA motoring club RAC’s insurance business that is still being reviewed by the competition watchdog.

Like the RACQ deal, the agreement with RAC includes a distribution alliance.

“During the year, we embarked on two significant transactions that we believe will deliver considerable growth for our company,” IAG chair Tom Pockett said at the annual general meeting last week. “These alliances build on our successful track record of partnering with leading member-based motoring organisations which share our purpose and values.

“In both cases, the associations and their members will benefit from our financial stability, advanced technology platforms, global reinsurance arrangements and customer-centric claims processes.”

Asked by a shareholder what happens if the RAC deal does not come through, Mr Pockett said: “We’ll just have to wait and see whether or not that is successful.”

Mr Pockett, who joined the board in 2015 and became chair in 2021, says this will be his final term with IAG.