ACCC Merger Review Update Public Benefits Application

• IAG responds to ACCC concerns with additional commitments
• Transferring NRMA Insurance renewal rights in Western Australia
• Investing $20m in Western Australian communities over 10 years
• Addressing limited insurance availability in northern regions

Insurance Australia Group (IAG) has responded to concerns raised by the Australian Competition and Consumer Commission (ACCC) in the public benefits phase of its merger review with the Royal Automobile Club of Western Australia (RAC). IAG has offered several commitments to address the ACCC's concerns, including transferring the renewal rights for active NRMA Insurance home and motor policies in Western Australia to another insurer, addressing the availability of RAC home insurance products in the north of the state, investing $20 million to support community resilience-building initiatives in Western Australia over the next decade, and underscoring its commitment to product pricing and competitiveness of the RAC-branded insurance offering. IAG expects these commitments to secure substantial public benefits for Western Australia, including broader claims handling expertise, major natural peril event response capacity, leading technology, and access to global reinsurance and capital markets.

IAG expects the transaction to be EPS accretive in the first full year of ownership.

IAG remains committed to the strategic alliance with RAC, expecting it to be consistent with its Ambition 2030 targets.