Australian Unity continued to develop opportunities for growth during the financial year ending 30 June 2009, despite a volatile market that led to subdued trading conditions.
The company, a national financial services, healthcare and retirement living organisation, today announced the establishment of an asset management joint venture, which is focused on Asian equities.
The joint venture with Seres Asset Management, a specialist Asian equities funds manager based in Hong Kong, is the organisation's fifth specialist joint venture.
Mr Mead said that, as with many similar businesses, the global financial crisis had a major impact on the Australian Unity Group's profit after tax: down to $1.1 million for the year ending 30 June 2009 from $32.3 million for year ending 30 June 2008.
The Seres Asset Management announcement follows other important initiatives recently unveiled by the Company, including a merger with Lifeplan Australia Friendly Society Limited that came into effect on 31 August 2009.
The year also included significant advances in the Group's Retirement Living business. After a successful bid in a major tender in Victoria, Australian Unity will develop a $180 million Wellbeing Precinct in Carlton to provide aged care, retirement accommodation and services for older people living in, or retiring to, the inner city.
The Group has also established an allied health business, focusing on providing evidence-based preventative health and chronic disease management programs for members and customers.
Group Managing Director Rohan Mead said today that the new initiatives were demonstrations that the Company was continuing to develop valuably.
"It is pleasing to see the range and scope of these opportunities," he said. "They all add value to members and strengthen our position as a diversified company focused on delivering services that foster customer wellbeing."
Factors that impacted on the company profitability included:
- Reduced earnings on Group investments;
- Lower investment management fees resulting from market declines in the value of equities related funds;
- Continued investment in the financial planning business; and
- Increased utilisation rates leading to higher claims costs in the Health Insurance businesses.
Mr Mead said the partnership with Seres was the Group's first initiative outside Australia.
"We see it as being very significant, both in offering members and investors valuable investment opportunities in the region and for the broader Australian Unity business to develop sensible linkages with Asia given its dynamic growth potential," he said.
"Our recent merger with Lifeplan Australia Friendly Society has also significantly grown Australian Unity. Following the merger, which was implemented on 31 August, the organisation has around 330,000 members and some 560,000 customers."
Mr Mead also heralded the Carlton Wellbeing precinct project as one that would provide valuable new services to members and customers.
"It is part of the Victorian Government's Carlton Redevelopment project and is designed to create much-needed integrated services. When complete, the investment will create around 150 permanent jobs and accommodation for some 400 residents."
Mr Mead said the Group also plans this financial year to commence construction of the Mornington Retirement Village, which will have approximately 280 independent village living units and an adjacent aged care facility.
Australian Unity is a national healthcare, financial services and retirement living organisation providing services to more than 560,000 Australians, including some 330,000 members nationwide.
In the financial year ended 30 June 2009, Australian Unity's revenue was more than $600 million. It employs around 1,300 staff nationally.
Australian Unity's history as a trusted mutual organisation dates back almost 170 years. It has grown organically by continually evolving and providing the services and products needed by the communities it serves as well as through successful strategic mergers and diversification into new business activities.
Its business approach can be summed up as developing and providing health, financial and lifestyle services capable of making a difference to the wellbeing of members, customers, employees and communities.
