Top SA company’s profit booms after sale of insurance arm
As InDaily prepares to unveil the definitive ranking of the state’s top 100 companies today, one list-leader has posted a significant profit, buoyed by the $642 million sale of its insurance arm.
RAA today announced its financial results, demonstrating a significant uplift on the back of the sale of its insurance arm to Allianz Australia.
That sale was one of the many deals that defined the South Australian Business Index for 2025, which will be unveiled this afternoon by InDaily at a sold-out lunch.
RAA sold its insurance arm to Allianz Insurance for $642 million earlier this year and entered into a 20-year partnership that would ensure the products and services remained in SA. Allianz now underwrites the insurance policies for the business, which provides roadside assistance and other services to South Australians.
Other initiatives like the rollout of its electric vehicle charging network across South Australia also had an impact on RAA, which has jumped over a number of major local companies in the rankings.
The South Australian Business Index will be unveiled later this afternoon. Subscribe to InDaily to be the first to know who topped the list.
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RAA’s overall profit was $276 million – up from $2 million the year prior. Excluding the sale of the insurance arm, RAA’s underlying profit was $24.3 million.
The company said this was a “strong performance” and meant the company retained $450 million in cash.
The underlying profit rise was driven by an influx of 15,000 new members and strong results from its insurance business, RAA said.
CEO Nick Reade said the last financial year was a defining one in the company’s 122-year history.
“It was a year of transformation to secure RAA’s future – we converted to a Company Limited by Guarantee under the Corporations Act and began our insurance partnership with Allianz Australia,” Reade said.
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“Our insurance partnership reduces our exposure to risk, builds a more resilient balance sheet and sets RAA up for the future.
“After tax and expenses, we’ll retain around $450 million in cash which – as a mutual organisation – we’ll of course be reinvesting to return even more value to our members, and the community.”
He said the company had been researching what its members wanted in terms of value, products and services in recent months.
“The feedback so far has been overwhelmingly positive, and members will soon start to see new offers to help with their household budgets, as well as RAA really stepping up our support in the community,” he said.
“We will continue to deliver the trusted home, motor, energy and travel solutions our members rely on, we were also able to introduce new ways to support our members.”
RAA said that during the year it helped members with $412 million in insurance claims, attended 357,500 roadside breakdowns, booked more than 48,000 holidays and delivered $43.9 million in member loyalty savings and discounts.
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It also completed a border-to-border EV charging network earlier this year, which is comprised of more than 550 plugs and 144 charging sites spanning from Yalata to Mount Gambier.
The company said it was one of the most comprehensive EV charging networks in Australia.
“With 144 charging sites now complete, South Aussies and visitors can have the confidence to go further in their EV, knowing they are never far from an RAA Charge,” Reade said.
“More than 130 small businesses and 40 councils across SA put their hands up to be site hosts and work with us on delivering this landmark project, which is a huge vote for the future of low-carbon transport in our state.”
