This Australian Health Insurance Startup Should Hit $100 Million Revenue This Year

Health.com.au CEO Andy Sheats. Image: Supplied.

Online health insurer health.com.au has set some big targets for the next 12 months after it finished up the 2013/14 financial year with a run rate of $85 million.

Health.com.au CEO Andy Sheats, who used to work at realestate.com.au, told Business Insider the company doubled its customer base, hitting 80,000 Aussies last financial year and hired an additional 16 staff taking its total headcount to 41.

With a fresh online approach to health insurance, the company has managed to attract a younger customer base with an average age of about 27, much lower than the average customer age across the health insurance sector of 41, he said.

Sheats told Business Insider he expects the company will hit the $100 million revenue mark before the year is out.

“The market opportunity is huge. The private health insurance sector is a $20B industry,” he said.

The health insurer’s run rate for July was over $90 million, Sheats said. “We’re going to hit it,” he said.

With revenue at that level you would expect the company to be thinking about an IPO.

Sheats said of an IPO in the future, “Potentially, eventually, yes.”

But he stressed it isn’t a near-term consideration, “There’s no particular rush.”

“I’m not emphasising IPOs and exits and all of that,” he said. “For the moment we’re just focussed on building the biggest, best health insurance company we can be.”

Sheats explained the company wouldn’t consider an IPO until profits are stronger, adding a listing would probably be looked at around the 200,000 customer mark, it “makes most sense around that time frame”.

“You want to IPO as the biggest, most profitable company you can be,” he said. “Unless you really have to IPO there’s no particular reason to do it.”

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