The 2011 Annual Report provides a review of operations for the year, detailed financial statements of the company, as well as the Directors' and auditor's report.
The 2011 financial year
has been another positive year for the company, a year in which each of our businesses demonstrated their continued resilience facing a dynamic external environment and the ongoing relevance of their products and services to our customers and members.
Revenues were $1 billion for the first time, up from $934 million in the prior year. Overall, the operating earnings of the company were $31.7 million, a 34 percent increase on $23.7 million in the prior year.
Our profits were also improved, notwithstanding the continued volatility of financial markets that influence the company’s earnings on insurance and corporate reserves. Total profit after tax rose to $25.6 million, up 50 percent from $17.1 million in 2010.
Highlights for Australian Unity in FY11 include:
Health
- Won the overall Outstanding Business Service Award at the International Customer Service Professionals Awards for the second consecutive year.
- Invested $36 million over the past four years in preventative health and chronic disease management.
- Increased membership base in NSW and QLD by 20.9 percent.
- Developed two new preventative health programs—the Maternity Support Program and Integrated Care Program—through Remedy Healthcare.
- Increased membership in the retail fund by 6.9 percent and the corporate fund (GU Health) by 18.9 percent.
- Invested in service and technology to provide members with ‘simple and useful’ healthcare.
Retirement Living
- Provided accommodation through 1,605 home units (2010: 1,755), 451 aged care beds (2010: 451) and 180 ambulatory and community care places (2010: 145).
- Launched the Retirement Village Property Fund for institutional investors, in conjunction with our Investments business.
- The Group’s Victoria Grange development in Vermont, Victoria continued its high market acceptance and the first stages of the new Peninsula Grange development in Mornington, Victoria were fully pre-sold during the year.
- Community Care services continued to expand and represented 5 percent of revenue for the year.
- Residential care occupancy across the aged care portfolios was maintained at 98 percent and retirement village occupancy increased from 94 to 95 percent.
Investments
- Increased funds under management from $10.3 billion to $11.9 billion.
- Launched the Retirement Village Property Fund for institutional investors, in conjunction with our Retirement Living business. Post year-end we entered into a contract to purchase a village and also entered a conditional agreement (subject to due diligence) to purchase a second village. Together, these villages have more than 200 units.
- Joint venture partner, Wingate Asset Management, received a special commendation for innovation in investment management from the Australian Centre.
- Launched a sixth joint venture partnership, Altius Asset Management.
- Purchased the unlisted Diversified Property Fund, previously owned by Westpac.
Personal Financial Services
- Increased loan book by 107 percent from $150 million to $311 million.
- Funds under advice increased by 76 percent to $1.02 billion (2010: $582 million).
- Grew numbers of network accountant referral partners from 70 to 163.
- Launched a joint venture ‘Next Rural Financial Management’ to supply financial advice and finance broking services to agricultural families embarking on business continuance strategies.
Australian Unity Limited (ABN 23 087 648 888) is a public company and serves 560,000 members, customers and their families nationwide. Its operations employ around 1,500 people.
If you are an Australian Unity member and would like to receive a copy of the Annual Report next year, please contact us on 13 29 39 or email memberrelations@australianunity.com.au.
