26/05/2021 - 11:00

HBF to acquire Brisbane-based insurer

26/05/2021 - 11:00

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HBF's membership is set to exceed 1 million with the acquisition of CUA Health later this year.

HBF to acquire Brisbane-based insurer
John Van Der Wielen says HBF and CUA are highly compatible, purpose-driven organisations. Photo: Attila Csaszar

HBF’s membership is set to exceed 1 million with the acquisition of CUA Health later this year.

The deal, confirmed earlier this morning, will give the Perth-based health insurer about 79,000 additional members and increase its national market share to 8 per cent.

That’s in addition to a five-year distribution agreement through CUA, which will be retitled Great Southern Bank as of the next financial year, in which HBF’s policies will be marketed to the bank’s customers through its branches.

HBF has said all CUA’s employees will be offered roles in Brisbane.

John Van Der Wielen, HBF’s chief executive, said the two businesses were highly compatible, purpose-driven organisations with a member-first ethos.

“Acquiring CUA Health is a significant and compelling strategic move for HBF to further propel our national growth strategy, building on the strong organic growth we’ve seen across Australia since our bold advertising campaign launched nationally in 2020,” he said.

“It will drive our membership base beyond 1 million, with approximately 17 per cent living outside of WA, up from around 11 per cent currently, and will provide us with great opportunities to grow our number of employees outside WA.”

While HBF confirmed the deal would be funded by existing cash reserves, further details are considered confidential and were not disclosed.

No regulatory approval was required for the deal.

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