By Digifin Pty Ltd · About this coverage
Key Points
- ACCC Phase 2 decision: IAG must not put RAC Insurance acquisition into effect
- Finding: likely substantial lessening of competition in WA motor and home insurance
- Combined WA shares about 55-65% motor and 50-60% home and contents
- Prior informal opposition in December 2025; formal regime notification followed
- Parties may lodge a public benefit application; 50 business days to determine
About IAG (ASX:IAG)
Insurance Australia Group Limited is an ASX-listed general insurance company headquartered in Sydney. It underwrites personal and commercial insurance in Australia and New Zealand under brands including NRMA, CGU, WFI, State and AMI, and distributes products through direct, intermediary and partner channels.
The ACCC has decided that Insurance Australia Group Limited (ASX:IAG) must not put into effect its proposed acquisition of RAC Insurance, following an in-depth Phase 2 assessment.
The ACCC is satisfied the proposed acquisition would have the effect or likely effect of substantially lessening competition in the supply of motor vehicle insurance and in the supply of home and contents insurance in Western Australia. In March 2026, IAG notified the ACCC of a proposal to acquire RACI from RACI Pty Ltd, a wholly owned subsidiary of the Royal Automobile Club of Western Australia Inc. The proposed acquisition would leave IAG with overall market shares in Western Australia of approximately 55 to 65 per cent in motor vehicle insurance and approximately 50 to 60 per cent in home and contents insurance. ACCC Chair Gina Cass-Gottlieb said the acquisition would combine two large insurers, resulting in a substantial increase in IAG's market share and a significant increase in market concentration. IAG applied under the previous informal merger regime in 2025 and the ACCC opposed in December 2025; IAG then notified under the formal merger regime which commenced on 1 January 2026. If the ACCC decides not to approve an acquisition, the parties are able to lodge a public benefit application; the ACCC has 50 business days to determine such an application, subject to any extensions.
The release does not state whether IAG will lodge a public benefit application, or any revised terms of a deal.
Source: Insurance Australia Group Limited (ASX:IAG), 23 September 2026. Summary content supplied by Digifin Pty Ltd.
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