RACQ insurance arm sale to IAG canned

RACQ’s deal to sell its troubled insurance business to IAG in a deal worth an expected $500m is dead in the water posing big challenges for the Queensland motoring group.

RACQ’s deal to sell its troubled insurance business to IAG in a deal worth an expected $500m is apparently dead in the water after the Sydney-based group last week resumed a huge share buyback. That means any plans for a warchest to acquire the Queensland insurance operations have been canned well and truly.

RACQ has shopped the business around to other potential buyers including to South African insurers Auto & General and Hollard but Sydney-based IAG has emerged as the favoured buyer last year. IAG already has a major stake in the RACV insurance business, giving it experience working with major motoring bodies.

So where does that leave RACQ, which posted an after-tax loss of $236m last year after flooding events and the discovery of several material regulatory breaches.

RACQ boss David Carter last year announced the insurer will refund half a million of its members a total of up to $220m after they did not get promised discounts on their insurance premiums.

Hunter Green Institutional Broking analyst Mark Tomlins says that competition concerns will presumably prevent Suncorp from acquiring the operations.

RACQ chief executive officer David Carter

“There is too much concentration in certain Queensland classes of insurance,” Tomlins says. “Maybe Hollard, which bought Commonwealth Bank’s insurance operations in 2021, will end up acquiring it, boosting their market share even further, and hence narrowing the gap between themselves and Allianz.” Tomlins also asks whether QBE may be interested, playing up its Queensland heritage, and increasing their exposure to personal insurance.

“Or would the Queensland government engineer a solution similar to what they did for Metway Bank all those years ago (during the merger with Suncorp)?” he asks.

RACQ also could potentially float the division off, and raise the needed capital in the process, akin to what NRMA did with its insurance division back in the late 1990’s. Both IAG and RACQ have declined to comment on any “market speculation” but RACQ earlier this year said that “in line with the increased climate risk facing all insurers, we have and continue to take active steps to strengthen our balance sheet including long-term partnerships in reinsurance.” Watch this space.

Coastal change

A changing of the guard at CBRE on the Sunshine Coast with Louisa Blennerhassett appointed to lead the local office, bringing 16 years of industry experience to her new role. The appointment has been announced as Rem Rafter hands over the managing director baton, after leading the office for 27 years. Blennerhassett will transition into the role over the next six months while Rafter will assume a senior director role within the Sunshine Coast agency team. Blennerhassett joined CBRE’s Sunshine Coast office two years ago as a director in the metropolitan investments team. She has significant experience in sales, leasing, property management and marketing, from roles with Ray White Commercial, QIC and Stockland.

Louisa Blennerhassett appointed to lead CBRE Sunshine Coast

Game on

Mega-events like the Olympic and Paralympic Games come with values and community benefits that are broader than just sport, says Brisbane 2032 Organising Committee Board director Professor Sarah Kelly, who has joined QUT as Head of the Graduate School of Business. Kelly leads the school that is responsible for the university’s highly ranked MBA and Executive MBA programs, and corporate education. It’s a busy role that will coexist with the tourism and sports administrator’s three other major positions in Queensland – she’s an independent director on the Brisbane 2032 Organising Committee Board, deputy chair of the Brisbane Lions AFL Football Club, and deputy chair of Tourism and Events Queensland.

New role at QUT for Sarah Kelly