Australian Unity has sold its building society to Illawarra Mutual (IMB). The sale will give IMB an easy ride into the Victorian market.

It’s also a signal that Australian Unity MD Mark Sibree is shifting the company’s focus from the “traditional” building society business into health cover, top-end home and contents insurance and funds management.

Australian Unity is shadowing the strategy of NRMA, which has its own building society up for sale. Acting CEO Ian Brown is pushing NRMA towards core businesses in general and health insurance, asset management, retirement services and international operations.

Whether IMB will be in the market for the NRMA building society – which NRMA bought from MLC in 1997 for $63 million – remains to be seen.

Wayne Morris, the CEO of Wollongong-based IMB, said the acquisition of Australian Unity Building Society will provide the company with “an entrée into Victoria, Australia’s second largest financial market”, increasing its current customer base of 220,000.     

Australian Unity will maintain building society services through an agency agreement with IMB.

Formed in 1880, IMB has 34 sales centres and loan operations in the Sydney metro area and southern NSW, ACT and the Gold Coast.  It also boasts an online presence and a national broker network.