Herbert Smith Freehills Kramer advises RACWA on entering $1.35 billion general insurance partnership with IAG

Herbert Smith Freehills Kramer is advising RACWA on its approach to entering a general insurance partnership with IAG, which will see IAG acquire the RAC Insurance business for $400 million and enter into a 20-year exclusive distribution and brand licensing agreement for $950 million.

If approved, as part of the transaction, RACWA will continue to distribute general insurance products under the RACWA Insurance brand through its existing channels, while IAG will take on underwriting, claims management, product development, and pricing.

The Herbert Smith Freehills Kramer team is being led by M&A partner Amelia Morgan and partner, Andrew Bradley, with support from partners Tess Mierendorff, Stephanie Panayi and Kwok Tang and includes solicitors Nick Venn, Nini Lu, Madeline Muddle, Arda Reznikas and Laura Boshier Eggins, senior associates Kosta Hountalas and George Psaltis and special counsel, Richard Robinson.

Amelia Morgan said, “It is a privilege to be working with RACWA on this important transaction. The transaction represents an important strategic milestone for RACWA which we are delighted to be involved in.”

Andrew Bradley said, “It has been wonderful working with the RACWA team to date on this significant deal. We look forward to continuing our work with the team as the parties work towards completion.”

The transaction is expected to complete in the first half of 2026.