The news: Insurance giant IAG has agreed to buy 90% of Royal Automobile Club of Queensland’s (RACQ’s) existing insurance underwriting business for $855 million, as part of a long term strategic alliance.
The numbers: Under the deal, IAG will pay $522 million for the stake in RACQ Insurance and also make an upfront cash payment of $333 million for entering into an exclusive 25-year distribution agreement.
IAG has an option to acquire the remaining 10% stake two years after completion of the…
