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

Research evidence excerpt

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

Global Research

19 July 2026ab

Australian Insurance & Div Fins Weekly Equities

AustraliaInsights Insured - Issue #53

Diversified Financial

Kieren Chidgey

Focus item: IAG submits remedy package for proposed RAC acquisition Analyst

IAG has submitted a formal remedy package to the ACCC to address competition kieren.chidgey@ubs.com

concerns surrounding its proposed A$1.35bn acquisition of RAC Insurance. The +61-2-9324 2820

proposed undertakings include a competitiveness framework aimed at keeping Shreyas Patel, FIAA

RAC-branded insurance products competitively priced in WA, commitments to Analyst

preserve competition in smash repairs, and a pledge not to own or control repair shreyas-k.patel@ubs.com

facilities in WA (subject to limited exceptions). The ACCC has now issued a market +61-2-9324 2821

questionnaire seeking feedback on whether these remedies adequately address Fraser Noye

concerns around insurance distribution and repair markets, with responses due by Analyst

22 July. (Link). fraser.noye@ubs.com

+61-2-9324 3353

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

Zoey Chen

incrementally improve the potential for a deal to proceed. The ACCC review

Associate Analyst

process is currently in Phase 2, where the ACCC will assess whether the remedies zoey.chen@ubs.com

adequately address the competitive impacts of the merger. While the remedy +61-2-9324 3496

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