IOOF WealthBuilder

Acquisition of Australian Unity Life Bonds Limited (formerly IOOF Ltd)

1. Why has Insignia Financial sold IOOF Ltd and its investment bond business to Australian Unity?
The investment bond business was considered adjacent to Insignia Financial’s core strategic priorities and the sale of IOOF Ltd will provide improved business focus and clarity.

Australian Unity is a leader in the investment bonds sector, with an existing investment bond business offered through Lifeplan Australia Friendly Society (LAFS). Clients will benefit from joining Australian Unity which is committed to growing and investing in the investment bond sector over the long term.

2. Why will there be a transition period?
We are first and foremost, wanting to ensure that there is minimal impact to you.

An initial transition period will allow both Insignia Financial and Australian Unity to work together collaboratively to ensure a smooth transition for clients. Having this time to manage the transition of some 30,000 accounts onto new operating systems makes sense for such an acquisition and we note that it remains business as usual for clients over this time.

3. What can I expect once the transition to Australian Unity is complete?
We are first and foremost, wanting to ensure that there is minimal impact to you.

At the conclusion of the transition period, clients will be transferred from Insignia Financial’s operating systems to Australian Unity operating systems. Over time and in line with our usual course of business, we will review the product suite and look at ways to improve our overall offering to clients.

4. How does the acquisition impact existing policy holders?
Right now, and for the period of transition, it is business as usual. At this stage, we are focused on a smooth transition for clients and we continue to work with Insignia Financial to achieve this.

Clients will benefit from joining Australian Unity which is committed to growing and investing in the investment bond sector over the long term.

5. Is Australian Unity going to make any changes to the IOOF WealthBuilder loan facility?
There will be no changes to the operations of the IOOF WealthBuilder loan facility during the transition period. The IOOF WealthBuilder loan facility has been closed to new applications (including applications to increase) since April 2021, and this will remain unchanged.

6. Who do I contact if I have any questions?
During the transition period, if you have queries with regards to your investment, please contact your financial adviser or the Investor Services Team at Insignia Financial on 1800 002 217 or investorservices@insigniafinancial.com.au.

If you have any queries regarding the acquisition or Australian Unity, please contact us on 1300 1300 38 or enquiries@australianunity.com.au. 

Transfer of Australian Unity Life Bonds Limited to Lifeplan Australia Friendly Society Limited

1. Why is the AULBL business being transferred to Lifeplan Australia Friendly Society (LAFS)?
As a leading issuer of investment bonds with combined funds under management of over $3.6bn and 165,000 customers, Australian Unity is committed to growing the investment bond sector and to continue to help Australians plan for key life events and milestones. 

Combining the two businesses, means in practical terms that we remove duplication and the associated additional costs in operating two friendly societies, in turn improving operational efficiency. 

Moreover, the scale of the combined businesses further strengthens the financial health of our business, helping protect your investment with LAFS.

2. What does the transfer of business entail?
An application for the voluntary transfer of the AULBL business to LAFS under Part 3 of the Financial Sector (Transfer and Restructure) Act 1999 (Cth) (FSTRA) has been submitted to the prudential regulator, the Australian Prudential Regulation Authority (APRA).

Due diligence activities were carried out for the purpose of the transfer, which include: 

• an actuarial impact assessment of the transfer;
• a review of the constitutions of each friendly society and the AULBL benefit fund rules to identify whether consequential changes are required; and
• identification of any tax or stamp duty issues resulting from the proposed transfer. 

This work has been supported by the respective Appointed Actuary for each entity as well as legal and tax consultants.

3. When does the transfer take effect?
Subject to APRA approval, the transfer will be effective on or before 1 December 2024.

4. How does the transfer impact me as an existing AULBL policyholder? 
As an existing policyholder, there are no adverse changes to your entitlements, current product, or policy as a result of this transfer.

The Board of AULBL considers that the interests of policyholders are advanced by the transfer to LAFS due to the increased level of benefit protection and capital diversity through being owned by a much larger friendly society.

The respective Appointed Actuary for each entity prepared a report on the transfer of AULBL into LAFS. An extract of the reports is provided below:

5. As an existing AULBL policyholder, do I have to do anything?
No, you are not required to take any action as a result of this transfer.

6. Will I become a member of Australian Unity Limited as a result of this transfer?
Established in 1840, Australian Unity is Australia’s first wellbeing company, delivering positive impact through health, wealth and care services for our members and the community. 

In 2025, we will write to you with an invitation to opt-in to Australian Unity membership. Australian Unity members receive exclusive access to a range of benefits that help measure and improve personal wellbeing.  Membership is optional and provided at no cost.

7. Who do I contact if I have any questions?

If you have any queries regarding your existing investment, please continue to contact Insignia Financial at 1800 002 217 or email investorservices@insigniafinancial.com.au. If you have any queries regarding the transfer, LAFS or Australian Unity, please contact our dedicated phone line on 1800 800 245 or email AULBLTransfer@australianunity.com.au.