Company Profile: RACV

INTRODUCTION

Royal Automobile Club of Victoria (RACV) Limited is a multi-faceted organisation that provides diverse products and services to its members with principal activities in emergency roadside assistance, technical advice on vehicles, driving instructions, road safety and vehicle design research, travel and tourism tips. The Car Roadside Membership has more than 190,000 members while more than 22,500 members have joined the RACV Club. The company employs more than 1,500 staff throughout its operations in Australia.

HISTORY / BACKGROUND

1903 - Automobile Club of Victoria (ACV) was formed.

1926 - The introduction of Road service membership.

1952 - The opening of Healesville Country Club.

1952 - Published the first Royalauto magazine.

1960 - Established RACV Driving School.

1970 - The establishment of RACV's own insurance company, RACV insurance Pty Ltd.

1971 - Formed RACV Credit Union.

1987 - Corporate headquarters at 422 Little Collins Street, Melbourne was opened.

1994 - RACV Financial Services were introduced.

1997 - RACV introduced superannuation products.

1997 - RACV Foundation was established with the objective of supporting and assisting works in communities.

1998 - Home Security was launched.

1998 - Fleet Care packages were launched.

2003 - The RACV Rural Road Safety program was launched, offering grants to rural Victorian community groups with the aim of developing local road safety projects and initiatives.

2005 - Acquired Direct Salary Packaging Group (DSP), a leasing and fleet management company.

2005 - Purchased a new resort at Cape Shanck for RACV members.

PRODUCTS

RACV offers a range of products including third party property and motor vehicle insurance, home and contents insurance, landlord insurance, farm and business insurance, boat, caravan and trailer insurance, home security, financial services and personal loans. In addition, RACV operates resorts at Cape Schanck and Cobram and quality lifestyle clubs in Melbourne's CBD and Healesville.

The principal activities for RACV include emergency roadside assistance, social club operations, financial services, travel and tourism, advocacy, home security and the provision and distribution of general insurance.

It comprises six major segments:

Member Services segment - services provided to RACV members. These consist of Emergency roadside assistance, city and country club facilities, motoring guidance and telemetric services.

Property Development segment - comprises property managed by the company. This includes the new RACV Centre at 501 Bourke Street.

Insurance segment - comprises of distributions of general insurance products and an investment in an insurance manufacturer.

Financial Services segment - comprises of Motor vehicle finance, personal loans, novated leases, and any additional financial services.

Investments segment - comprises of all investment activities.

Other/Unallocated segment - comprises of business units below the segment definition threshold of 10%, and corporate expenses not directly attributable to identified segments.

Intersegment Elimination segment - includes eliminations on all transfers of segment revenues, expenses, assets and liabilities between segments.

The company operates predominately in one geographic segment that being Australia.