Australian Unity will accelerate its campaign to build its financial planning business in New South Wales after announcing merger plans with Grand United Friendly Society today.
The deal is being pitched as a move to allow Australian Unity to tap into the lucrative retirement living and healthcare client base of Grand United – one of Australia’s oldest companies.
The two groups, who announced the merger in Sydney this morning, have been in talks since March. The merged entity will operate under the Australian Unity banner.
The current group managing director of Australian Unity, Rohan Mead, will assume the position of chief executive of the merged entity.
At present there is only one retail financial planner working under Australian Unity in New South Wales, but Mead said this will change post-merger.
“It’s certainly an area we will be looking to grow,” Mead said.
The merger, which is subject to member and regulatory approval, will see a mutual company emerge with $500 million in revenues and 200,000 members nation wide.
For Grand United managing director Warren Stretton, the merger will signal his retirement.
Stretton had been in the job since 1992, and had indicated his intent to retire prior to talks commencing with Australian Unity.
Stretton said the merger will boost the career path for Grand United staff who may want to diversify their skills from purely health and retirement living administration.
“It gives Grand United staff an increased opportunity, whereas under the old structure they could only go so far in the organisation,” Stretton said.
The merged entity will include a 180,000 member health insurance business as well as a retirement living operation in both Victoria and New South Wales.
The merged financial services businesses will comprise of some $2.3 billion in funds under management.
Grand United chairman Warren French said the merged group would achieve the geographic expansion goals of both organisations.
“The merger will especially strengthen the health insurance and retirement living services offered. It will allow members and customers from both groups to access a broad range of services from a wide set of businesses,” French said.
