CUA CEO Paul Leiws
CUA will release a significant amount of capital with the sale of its health insurance business to Perth-based HBF.
Dressed up as a five-year strategic partnership, CUA will offer HBF’s health insurance products to its banking customers.
CUA Health has around 79,000 members.
No formal regulatory approvals are required for the acquisition HBF told its members, with the purchase price funded by HBF’s existing cash reserves.
CUA Health made a net profit of A$6.1 million in FY2020, out of a CUA Group NPAT of $37.3 million. Two years ago the CUA Health profit was $9 million.
“The money raised from this sale give us the opportunity to pursue growth options for our core banking business,” CUA Chief Executive Officer Paul Lewis said.
“This is just the next step in what is going to be a huge year for CUA as it transitions to Great Southern Bank,” he said.
Monday next week is the day CUA rebrands.