The Royal Automobile Association of South Australia (RAA) has strengthened its board with the addition of two new directors, coinciding with its recent transition to a Company Limited by Guarantee (CLG) under the Corporations Act.
Sunita Gloster AM (pictured) and Dinuke Ranasinghe have joined the board, succeeding Victoria Angove and Sharon Starick, who have stepped down from their roles.
Gloster, whose appointment takes effect on 31 July, brings a background in customer strategy, professional services, and governance.
She currently chairs the Diversity Council of Australia and is a board member of the UN Global Compact Network Australia.
Her experience spans listed and private companies as well as not-for-profit organisations, with expertise in digital strategy and member-based organisations.
Ranasinghe, who joined the board at the end of June, is the chair and CEO of Arcadier, an e-commerce platform provider.
His experience covers technology, digital innovation, and strategic planning, with a focus on commercialising digital platforms and adapting to emerging technologies.
The appointments were announced during a recent RAA member information session, which provided an opportunity for members to engage directly with the board and leadership team.
Board chair Kathy Gramp said the new directors’ skills would support the organisation’s ongoing evolution.
“As RAA embarks on its next chapter under the Corporations Act with a modernised corporate governance structure and growing and diverse business, it’s imperative we have directors with the right skill set to help lead the organisation,” she said.
The board changes align with a significant development for RAA, as Allianz Australia has received approval from the Australian Competition and Consumer Commission (ACCC) to acquire RAA Insurance (RAAI), the association’s personal insurance arm.
The transaction includes a 20-year exclusive distribution agreement between RAA and Allianz.
Market analysis from Macquarie suggests that the deal values RAA’s insurance operations at a multiple above recent comparable transactions involving other mutual insurers.
The price-to-gross written premium ratio in the Allianz-RAA transaction is also reported to be higher than those seen in previous deals in the sector, establishing a new benchmark for similar arrangements.
Chief executive officer Nick Reade said the board changes were positively received by members and emphasised the importance of ongoing dialogue.
“As a member-based organisation, we’re always looking at ways to connect with our members – whether it’s at our AGM, our regional roadshows, and Gold50 events or forums,” he said.
Reade indicated that RAA would continue to consult with members throughout the year on how best to allocate resources following the capital injection from the Allianz deal.
RAA engaged The Bridge International, a local advisory firm, to oversee the strategic planning and partner selection process for the transaction.
According to RAA, the decision to appoint a specialist advisory firm was based on the need for deep sector expertise and an understanding of mutual structures, rather than relying on larger investment banks.
Former RAA chair Peter Siebels said that the board’s decision to consider a partnership was influenced by the financial impact of recent extreme weather events, which highlighted the need for a more sustainable approach.
The advisory process included a review of industry trends and a strategic assessment of the insurance business, ultimately leading to the decision to form a partnership with Allianz.
