CUA signs partnership with HBF

CUA, Australia’s largest customer-owned bank, today announced a strategic partnership for its health insurance business with not-for-profit health insurer HBF, enabling both organisations to increase their scale and competitiveness.

The partnership means the CUA Health business is sold to Perth-based HBF giving them an expanded footprint across Australia’s east coast and an exclusive distribution agreement so CUA, rebranded as Great Southern Bank, can offer HBF’s broad range of health insurance products to its banking customers.

“Our two companies have long and proud histories and share similar values, with both organisations committed to a customer-focussed business model delivering strong value for customers,” says CUA Chief Executive Officer Paul Lewis.

“This move allows both of us to focus on our core business and key strengths. For CUA, we can focus on our core banking business and helping customers with all aspects of their home ownership journeys, whether it’s saving for a first home, buying a portfolio of houses, or being financially secure enough to help the kids buy their first property.”

HBF is Australia’s second-largest not-for-profit health insurer and CEO John Van Der Wielen says the similar ethos of the two firms and the fact that their geographic footprint does not overlap make this a great fit.

“With members at the heart of everything we do, we are looking forward to delivering even better value and member experience for all our members into the future,” says Mr Van Der Wielen. “Most of the new members coming across from CUA Health will have lower premiums, as well as broader services and the security of a fund that has been in operation for 80 years.”

“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.”

CUA will use the funds from the sale to help grow its banking business supporting Australians to own their own home.

“CUA’s purpose is to help all Australians own their own homes,” says Mr Lewis. “The money raised from this sale will increase our ability to achieve this and give us the opportunity to pursue growth options for our core banking business. This is just the next step in what is going to be a huge year for CUA as it transitions to Great Southern Bank,” says Mr Lewis.

About the partnership

The partnership will continue to explore additional opportunities for collaboration, scale and competitiveness:

• Gives CUA a significant boost in Tier 1 capital
• Employees working for CUA Health will be offered roles with HBF
• CUA will offer HBF health insurance to its banking customers
• HBF to offer wider product offering for CUA Health customers with no changes to waiting periods as a result of the sale
• Sale is expected to complete Q1 FY22

About CUA

CUA is Australia’s largest customer-owned bank, contributing to the financial wellbeing of around 568,000 Australians through our banking, insurance and health insurance offers. We were created by members for members, and our growth and success enable us to reinvest in our business, deepen our relationships with members and build stronger communities. On the 1st of June 2021 CUA will become Great Southern Bank.

Visit www.cua.com.au.

About HBF

HBF was founded in Perth in 1941 and has provided private health insurance to generations of Western Australians. In 80 years HBF has grown to become Australia’s second largest not-for-profit health fund, providing hospital and ancillary insurance to around one million members nationwide. HBF is also becoming a more active participant in health services, with the establishment of its Pharmacy 777 alliance and the recent launch of HBF Dental HBF is also committed to actively connecting with and supporting the communities in which it operates as a trusted member-based organisation.

For more information, visit www.hbf.com.au.

Media contacts

CUA - Tansy Harcourt Mob: 0428 602 508 or Email: tansy.harcourt@cua.com.au

HBF – Shae Spark Mob: 0403 240 558 or Email: shae.spark@hbf.com.au