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The Australian Competition and Consumer Commission has approved Allianz’s strategic partnership with the Royal Automobile Association of South Australia, formally completing a transaction that industry analysts say sets a new benchmark in the sector.
The deal, which sees Allianz purchase RAA’s insurance arm, has drawn significant attention for its valuation and advisory process. According to Macquarie’s Insurance Australia Group – The Spirit of Australia report, the price paid equates to 23.9 times earnings and 1.15 times gross written premium. This exceeds the metrics of similar transactions, including RACQ (18x profit, 0.73x premium) and RAC (16.5x profit, 0.9x premium).
RAA’s lead advisor on the deal was The Bridge International, a small Australian strategic advisory firm that was chosen ahead of global investment banks and major consultancies.
RAA Chief Executive, Nick Reade (pictured left), said the selection was deliberate.
“We could have used a tier one investment bank,” he said. “But what we really wanted were advisers who had a deep understanding of the insurance industry, our business, and member-owned organisations. The Bridge brought all of that.”
Former RAA Chair, Peter Siebels, said the organisation had reached an inflection point after consecutive natural disasters placed pressure on regional insurers.
“With several catastrophic weather events in one year, it was clear we had to do things differently,” he said. “The Bridge helped us identify our strategic options and develop a clear path forward.”
The Bridge was engaged to assess long-term strategic directions, including financial risk mitigation and growth incentives, while maintaining member and employee value.
Stuart Blake, Managing Director and Co-founder of The Bridge (pictured right), said, said his team helped build a case for a 20-year strategic partnership with Allianz, including critical elements like brand protection and pricing governance.
“We pride ourselves on being different,” said Blake. “We care for our partners and invest in long-term relationships. That approach helped us deliver this result.”
Reade added that The Bridge embedded closely with internal teams during the process.
“They were in every board update. It was a seamless partnership,” he said. “They weren’t just advisors – they were an extension of our leadership team.”
Siebels noted the cultural fit between The Bridge and RAA as a decisive factor.
“They always bring their A team,” he said. “Their empathy and alignment with our member values were clear throughout.”
The deal has been described as a “transformational result” for RAA and Allianz, securing the RAA brand for the next two decades.
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“This protects the future of RAA,” said Siebels. “It improves the experience for our members and sets us on a sustainable path forward.”
Reade concluded, “The Bridge were motivated, experienced and well-connected. Their guidance helped us get exactly what we wanted – a fair and strategic deal for all parties involved.”
Last Updated on July 3, 2025 by Nick Ross
