Private health insurer MBF plans to expand into personal investment and further consolidate Australia’s 42 health funds. And MBF CEO Eric Dodd appears to have his eyes on IAG’s health insurance business as a takeover target.

Mr Dodd is the former MD and CEO of IAG forerunner NRMA Insurance. He was forced to quit in April 2001 as the company’s boardroom battles came to a head. It’s understood a multi-million dollar settlement was later reached.

Mr Dodd told Channel Nine’s Business Sunday program MBF is considering moving into life insurance, the annuity market, personal investment and the financial market through acquisitions.

“We get by pretty well with five banks,” he said. “Why do we need more than five health insurance companies or general insurance companies?”

He sees the most obvious choices for acquisitions as IAG’s health insurance division and some parts of the Federal Government-owned Medibank Private.