Australian Unity – one of the dwindling pool of mutual insurers operating in Australia – has once again opened up for debate the possibility of a demutualisation.

While the Australian Unity board has considered such a move many times, Group MD Rohan Mead told Sunrise Exchange News it was never previously seen as an appropriate step.

“However, our recent merger with Grand United as well as business developments and the interest of new parties has led us to say ‘now is the time’.”

In a letter to members, Australian Unity Chairman Alan Castleman says the company feels it is appropriate to revisit the issue formally in order to obtain their guidance.

The question of demutualising was “theoretical” in the past, with the value of the business divided by the number of members seen as fairly small. But growth and better performance has presented the company with “many new opportunities”.

He says the board will canvass with members the merits of the demutualisation issue, which he describes as “a major philosophical question”.

“We know that large numbers of our members choose to be with us because of our mutual character,” he said. “On the other hand the issue rightly claims directors’ attention as it is our duty to look after members’ interests at all time, and this includes issues to do with financial value.”

Mr Mead says Australian Unity will also receive “expert assistance” on the issue, and he doesn’t expect to see any move before the end of the year. “It will take time given the considerable complexity with so many members involved.”