ACCC NOT TO OPPOSE MERGER

7 November 2007

BUPA Australia welcomes today’s announcement by the Australian Competition and Consumer Commission (ACCC) that it does not oppose the proposed merger with MBF.

In August, BUPA Australia confirmed its interest in merging its Australian health insurance businesses with MBF following initial discussions between the two leading health funds.

While the ACCC decision is not confirmation of a merger with MBF, this is one step in the process of seeking regulatory approvals.

BUPA Australia is now awaiting further regulatory approvals for its proposal and once these are finalised the health fund will re-initiate formal discussions with MBF.

For media enquires contact:

Julian Murphy
BUPA Australia
Corporate Communications – Tel: 03 9937 4345, Mob: 0434 072 024.

Background information:

The health care needs of more than one million Australians are supported by BUPA Australia, giving the health fund a national market share of 10.13 per cent. BUPA Australia is known as HBA in all states except South Australia and the Northern Territory where the customer brand is Mutual Community. Both brands have provided health cover for Australians for more than 70 years.ⁱ

BUPA Australia operates a customer branch network in Victoria, New South Wales, Northern Territory and South Australia. The majority of customers are located in Victoria (550,000) and in South Australia (351,000).

BUPA Australia is the country’s largest health fund to cover over 94 per cent of hospital charges and has consistently kept its average premium rises below the industry average for the past six years.ⁱⁱ

As part of a strong global health focused group BUPA Australia continues to lead the industry in product innovation and improved services and benefits for its customers. In addition, BUPA Australia provides customers with travel, vehicle, home and contents insurance services.

i HBA established in 1934, Mutual Community established in 1937.
ii PHIO State of Health Funds Report 2006, March 2007, Pg 35. & Parliamentary submissions, Private Health
Insurance Reports on Premium Increases 2001 to 2007.