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AUB pursues options for sale of rehab assets

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AUB has appointed PwC to assist with the potential sale of its Altius rehabilitation and health business as the company returns to a focus on its core broking operations.

The move to sell Altius, in which AUB has a 56.9% share, follows the group’s exit from Allied Health at the start of last financial year's fourth quarter.

PwC has commenced early discussions with potential trade and private equity buyers, with a structured auction expected to follow, the Australian Financial Review reported last week. AUB declined to comment when contacted by insuranceNEWS.com.au, but has flagged the possible sale of the business.

“We are very pleased with the progress made to transform the performance of Altius, which has strong momentum,” CEO Mike Emmett told the results briefing last month. “As previously mentioned, we anticipate exploring options regarding our investment in Altius during FY21.”

Majority stakes in Allied and Altius were acquired in 2015 as part of a diversification strategy pursued by previous CEO Mark Searles, who led the group for six years.

Mr Emmett, who took over in March last year, has refocused the company on its core broking operations in Australia and New Zealand, rather than seeking to expand through complementary services.

In the year to June 30 health and rehabilitation contributed $4.2 million to AUB’s pre-tax profit. The Procare business – which provides diversified services to insurers and insurance broking clients – moved to the Austbrokers division in July last year.