Clearview Retirement Solutions has been acquired as part of a deal between BUPA Australian and MMC Contrarian, but BUPA maintains a stake in its performance due to a 10-year distribution arrangement.
BUPA announced the sale of MBF Life and Clearview to MMC Contrarian last week, in a deal that is subject to regulatory and MMC shareholder approvals. Part of that deal was a reciprocal distribution deal that would ensure the ongoing sale of life risk and wealth management products to BUPA Australia’s customers and the sale of private health insurance to MMC’s customers.
As such, BUPA Australia managing director Richard Bowden said his company is still keen to see Clearview grow and only looked to sell because it is not aligned with the core of BUPA’s business: health.
“We have no issues with the type of service that’s provided — it’s just that we’re not the natural owners of the business,” said Bowden.
“That’s the thing that really drove the decision [to divest] and we set about finding from whom we could still get access to the products and services, or get access to better products and services.”
Bowden said neither party is concerned about any regulatory hurdles, and expect the deal to be finalised in June.
“The great news for Clearview customers and employees is that all of the employees are transferring to the new businesses,” he said
He added that MMC managing director Simon Swanson is keen to grow the business, having seen that rationalisation in the financial services industry is providing smaller players with the opportunity to provide niche products and services.
