About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, May 29th, 5:56PM
rss
Latest Headlines

Ballantyne sets sail with Club Life

The merger of Sovereign and Colonial has opened a gap for a new life company, former Sovereign COO Naomi Ballantyne says.

Wednesday, January 17th 2001, 10:07PM

by Philip Macalister

Former long-time Sovereign staffer Naomi Ballantyne is planning to establish a new life insurance company in New Zealand that is modeled on the original Sovereign Assurance.

Ballantyne, who joined Sovereign 12 years ago but suddenly resigned her position as chief operating officer late last year, is currently looking for capital to set up a new business called Club Life.

She left Sovereign to set up a new business as she felt the company had got away from its original philosophies and was now like all the other big life offices.

These changes had been brought about by the new owners, ASB Bank, and its decision to merge Sovereign and its other recent acquisition, Colonial, under the Sovereign brand name.

Ballantyne says this sort of rationalisation in the market has created room for a new player.

"The Sovereign and Colonial merger has resulted in a lack of choice for independent brokers," she says. "They now effectively have only one carrier."

Club Life will be like Sovereign Mark II and strongly focussed on using independent brokers for distribution.

It will have a standard range of life products, and is considering having an insurance/investment product.

The new company plans to compete not on price, but on service and giving brokers a stake in the business.

"Products and price are not our value proposition," she says.

Club Life will only deal with a limited number brokers and they will be offered shares and options.

"It will be almost an exclusive club," she says.

Ballantyne says the brokers Club Life are interested in are the ones that write the most valuable business, not the most volume. The key value driver is persistency, not sales.

Ballantyne says Club Life has secured some seeding capital and is now in the process of trying to raise up to $10 million to get the business going.

One rumour circulating the industry at the moment is that Sovereign founder Chris Coon is helping fund the business. However, Ballantyne says that is not the case.

Club Life has recruited a number of key people to the business, but their identities are being kept under wraps at the moment.

Likewise, it is in discussions with an unnamed reinsurer.

Club Life is a registered company, and it is in the process of setting up offices in Browns Bay on Auckland's North Shore, but it has not yet placed its $500,000 bond (which all life companies have to do) with the registrar of companies yet.

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« New insurance course at MasseyMore pressure to come on disability contracts »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Strategy Thoughts
News Bites
Latest Comments
  • FMA starts major investigation into churn
    “Does anyone know if the Banks are included in this fishing exercise? And how will the FMA be able to differentiate between...”
    23 hours ago by I was wondering
  • Getting to know...Peter Leitch
    “And a thoroughly nice guy to boot. "Good on yer, Peter! We need more advisers of your ilk" (Wonder how many will scurry...”
    24 hours ago by Robert Oddy
  • Did issues paper miss opportunities?
    “This response is an attempt to get some debate going here. Angus is reported as making 3 major points here. I would grade...”
    24 hours ago by Murray Weatherston
  • Getting to know...Peter Leitch
    “Never met the Mad Butcher, I am sure he is a nice chap. I have met this Peter Leitch and he is definitely a nice chap; and...”
    1 day ago by Giles Thorman
  • New Zealand advisers won't dodge bullet: Rickerby
    “The reality is and any decent broker knows it, Life Insurance is more of a commodity these days with guarantees of upgrade...”
    1 day ago by Mark Ogden
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com