RACQ Group says it is more than halfway through a risk management improvement program, and it has again apologised for its premium renewal notice mistakes.

The Queensland motoring club’s CEO David Carter says an investigation into the renewal notices “did not reveal evidence that anyone at RACQ acted with bad intent, nor evidence that it was done to benefit RACQ in some way”.

He told members at yesterday’s annual general meeting the matter “has no bearing on the way we calculated premiums, and I want to assure you, the premium you paid was correct.

“To you, and all our members – I’m sorry.”

RACQ has shared its investigation findings with the Australian Securities and Investments Commission.

The regulator launched Federal Court proceedings against RACQ Insurance in September, alleging more than 570,000 renewal documents were sent to customers between September 2019 and December 2024 with misleading premium comparisons, despite customer complaints.

Mr Carter says the matter was brought to his attention in November last year.

“We promptly self-reported that the way we were presenting the comparison had the potential to be misleading. In addition to advising ASIC, we commenced a review and promptly took steps to provide further clarification in our communications.

“We will work with the regulator to finalise the renewal notice matter.”

He says the start of RACQ’s 25-year partnership with IAG is an important milestone for the group’s insurance positioning. Under the deal, IAG acquired 90% of RACQ Insurance for $855 million and will be responsible for underwriting, claims management, and product and pricing.

“By transitioning our insurance product and claims management business to IAG, we can leverage its scale, technology and reinsurance capabilities, while we focus on marketing and distribution, and continue to offer insurance under our trusted brand.”

RACQ’s 2024-25 report says the insurance business delivered an after-tax profit of $126.7 million, driven by reserve releases following its exit from Queensland’s compulsory third party scheme, strong growth across core portfolios and solid investment income.

Personal lines net incurred claims fell $44.1 million compared with the previous year.

“This was largely due to the cyclone reinsurance pool, which covered a substantial portion of home claim losses from [Ex-Tropical Cyclone Alfred].”

The report says RACQ’s risk transformation program – established in July 2023 in response to ASIC’s pricing promises review – is 65% complete.

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