Pressure is mounting on the largest remaining insurance mutual, Victoria’s RACV, to demutualise. Disappointing results and a perceived imbalance in the RACV’s board have attracted high-profile shareholder activist Stephen Mayne, who has called for changes to the organisation’s structure.

Insurance Manufacturers of Australia, which RACV shares with IAG, provided commission income of $48.5 million in the June financial year. Its share of IMA’s investments loss for the year was $8.1 million.

Mr Mayne, who is editor of the online publication Crikey, said he is running on the platform that the RACV “should at least consider demutualisation”. He has taken aim at the RACV’s unusual board composition, which has nine directors elected by the 18,000 members of the social club, while seven are elected by the 1.2 million members of the motoring organisation.

“It is highly indulgent to spend $165 million of members’ money building a new headquarters and lavish club facilities which us ordinary roadside punters won’t get to enjoy even though we’ve paid for most of it,” Mr Mayne said yesterday.

There are six candidates for two board positions representing the motoring organisation, and three candidates for two positions filled by the RACV Club. It’s the first contested

election since 1973.