CGU is a part of Australia’s second largest insurance group IAG. HBF’s managing director Rob Bransby believes the company’s best interests would be better served as a distributor rather that a direct manufacturer.
The agreement will see insurance giant CGU distributing HBF’s trusted and local general insurance products including home and contents, motor, and travel over the next ten years.
Mr Bransby has said “This is a deal which makes sense for HBF itself and HBF policy holders. It means we’ll continue to distribute competitive general insurance products but these will now be provided by an insurer with all the advantages that scale provides”.
It came to HBF’s attention that being a smaller local player was becoming increasingly difficult and was struggling to compete against the larger scale and international insurance companies.
The decision to choose CGU as the insurance provider was based around a strong cultural fit with HBF. CGU’s CEO Peter Harmer said the company were drawn to the opportunity of partnership with HBF “because of its iconic brand, loyal membership base and its alignment with CGU’s values in relation to customers, service and our people.”
The sale was advised by KPMG Corporate Finance.
By Krystal Ayoub
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