Morning Expresso – Australasia "Monday 20 July 2026"

Research evidence excerpt

Morning Expresso – Australasia "Monday 20 July 2026"

Australian Insurance & Div Fins Weekly - Insights Insured - Issue #53

Focus item: IAG submits remedy package for proposed RAC acquisition Diversified Financial

IAG has submitted a formal remedy package to the ACCC to address competition concerns

surrounding its proposed A$1.35bn acquisition of RAC Insurance. The proposed undertakings include a

competitiveness framework aimed at keeping RAC-branded insurance products competitively priced in

WA, commitments to preserve competition in smash repairs, and a pledge not to own or control repair

facilities in WA (subject to limited exceptions). The ACCC has now issued a market questionnaire

seeking feedback on whether these remedies adequately address concerns around insurance

distribution and repair markets, with responses due by 22 July. (Link).

We view IAG's proposed remedies as a constructive development that may incrementally improve the

potential for a deal to proceed. The ACCC review process is currently in Phase 2, where the ACCC will

assess whether the remedies adequately address the competitive impacts of the merger. While the

remedy package should assist, the outcome remains uncertain. From an investor perspective, we

continue to see upside risk either way relative to Consensus forecasts with potential approval of the

RACI acquisition to support EPS accretion of 5-10% (all else equal). Conversely, should approval not be

obtained, we still see scope for value creation through alternative reinsurance arrangements and/or

buybacks, which we estimate could add ~2-3% to EPS.

Other notable news included with UBS view:

ASX- futures and cash market volumes MTD Jul-26

AMP/HUB/NWL - Wealth platforms Industry retail FUM & Flows Mar-26