IAG, an Australian insurer, plans to acquire 90% of RACQ’s insurance underwriting business for $855 million, establishing a 25-year exclusive partnership. The deal, which includes an option for IAG to acquire the remaining 10% in two years, will enhance IAG’s Gross Written Premiums by approximately $1.3 billion and is expected to boost earnings per share within the first year. IAG anticipates incurring one-off transaction costs of around $70 million but projects annual synergies exceeding $50 million by leveraging its reinsurance strategy on RACQ’s portfolio. The transaction is subject to regulatory approvals and is expected to be completed in the third quarter of 2025.