IAG share price storms to multi-year high on $855m RACQ deal
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The Insurance Australia Group Ltd (ASX: IAG) share price is riding high on Thursday.
In morning trade, the insurance giant’s shares are up 5% to a multi-year high of $8.60.
Why is the IAG share price pushing higher?
Investors have been picking up the insurer’s shares today after it announced a major long-term strategic alliance.
According to the release, IAG and RACQ will enter a 25-year exclusive strategic alliance to provide RACQ general insurance products and services for RACQ members and Queenslanders.
Under the strategic alliance, IAG will acquire 90% of RACQ’s existing insurance underwriting business, with an option to acquire the remaining 10% in two years on consistent terms.
This will come at a…
