Avant Proposal

We are very pleased to advise that your Board has agreed to recommend a proposal for bringing our Fund together with the Avant Mutual Group. The Fund will continue to be led by your  existing Chairman and CEO  and your health insurance policy will not be affected.

Avant will pay an agreed price of $28.5 million and the Fund will demutualise. We will ask you to exchange your membership rights in the Fund (but not your health insurance cover) for a cash payment based on your level of cover and duration of membership.

Cultural alignment

Both organisations are not-for-profit mutuals, focused on the medical community and providing market-leading products with outstanding benefits and services.

Benefits for you

The most significant benefits for fund members are:

• more capital strength.  Avant’s net assets as at 30 June 2010 were $628.4 million, compared with our $16.8 million. This will:

o   help us better meet the challenges of this competitive and changing industry;

o   ensure that we continue to offer the best products and services, while reducing pressure on premium increases;

o   enable us to significantly increase our membership;

o   help us strengthen our fund; and

• unlock your value in the Fund by a cash payment. The agreed price will be distributed to members based on a formula which will be reviewed by an independent actuary and by the relevant regulatory authorities. This is the usual process adopted in health fund demutualisations.

Your Board’s recommendation

In the absence of a more favourable proposal and subject to our receiving an independent expert’s opinion that the transaction is in your best interests and our satisfying certain regulatory and other requirements, your Board will be recommending that you vote in favour of the transaction.

What next?

In a few months’ time, we will send you an explanatory Scheme Booklet, explaining how the two mutuals will be brought together, and a Voting Pack, for making the necessary constitutional changes and to approve the transaction. We expect that it will take until the end of the year to complete all necessary steps.

Meanwhile, it will be business as usual

We are not intending any change to our product range, our service or our competitive pricing.

More information?

Please call us on 1800 508 716 if you have any questions about this promising development or keep up to date by visiting our website www.doctorshealthfund.com.au on which regular updates will be posted.

This is an exciting opportunity for the Fund and for you to benefit from coming together with Avant.

We look forward to your support for the transaction and to your continuing membership of our strengthened Fund.

Yours sincerely,

 

                                                               

Patria Mann                                                                            Peter Aroney

Chairman                                                                                Chief Executive Officer

 

 

If you would like to read the Press Release, please click here.