CGU has acquired the general insurance business of WA-based health fund HBF, and says it will generate more than $100 million of gross written premium annually.

Under the deal announced this morning by CEO Peter Harmer, CGU will also underwrite HBF-branded products for the next 10 years.

The cost of the deal has not been announced, and the transaction is expected to be completed next month, subject to normal regulatory approvals. 

The arrangement is similar to one CGU already has with MBF, under which it underwrites all the health fund’s general insurance products.

Mr Harmer says the partnership deal with HBF will help build a stronger presence for CGU in the financial institutions and affinity insurance channel and enable CGU to expand its footprint in WA.

HBF MD Rob Bransby says CGU’s scale and resources “mean it will ultimately be able to offer a greater range of products and services, as well as the security of a large, geographically diverse business”.