DLA Phillips Fox advises health insurance regulator on MBF/BUPA merger

DLA Phillips Fox advised the Private Health Insurance Administration Council (PHIAC), in its role overseeing the $2.41 billion merger between the Australian arm of British insurer BUPA and MBF Australia Ltd, the second and third largest health insurers in Australia.

PHIAC is an independent statutory authority that regulates the private health insurance industry. DLA Phillips Fox advised PHIAC on the application made by MBF for approval to convert from registration as a not-for-profit private health insurer to a for-profit insurer.

MBF's proposal was in substance a demutualisation so DLA Phillips Fox advised on the distribution of financial benefits in accordance with the legislation, as well as compliance with other statutory requirements.

PHIAC gave approval to the demutualisation and the Federal Court subsequently approved the merger on 14 May. Following the merger, MBF policyholders stand to receive a cash payment from the deal towards the end of June.

The DLA Phillips Fox advisory team was made up of lead Partner Kim Robbins, Partner Michael Reed, Special Counsel Greg Parkin and Senior Associate Elizabeth Weisske.

"This was a large commercial transaction, with BUPA paying $2.41 billion and it could not have gone ahead without the approval of our client," said Kim Robbins.

This is only the second demutualisation of a health insurer under the new Private Health Insurance Act 2007, following the demutualisation of NIB last July, in which DLA Phillips Fox also advised PHIAC.

Once merger is implemented, the BUPA Australia Group will insure approximately three million Australians with a market share of close to 28 percent of the $10 billion private health insurance industry.

For further information please contact:

Kim Robbins, Partner
T: +61 2 6201 8718
kim.robbins@dlaphillipsfox.com

Clare Buttner, Media Relations Consultant
T: +61 2 9286 8400
clare.buttner@dlaphillipsfox.com