Club Life gears up for business
About-to-be launched life insurer Club Life outlines more details of its operations.
Thursday, June 7th 2001, 10:23PM
Club Life, a life insurance company set up by former Sovereign executive Naomi Ballantyne, is set to open for business on July 1.
The new insurer, whose major shareholder is investment group Hellaby Holdings, will offer a universal life product, combining risk cover and savings, says Ballantyne.
Club Life expects to have 250 independent brokers signed up by July 1 and will offer them options to buy shares in the insurer based on how much business they write.
Marketing material outlining the products and a prospectus containing details of the share offer will be sent to brokers on June 18.
Ballantyne says Club Life has already raised $5.5 million in capital, from a target of $10 million. Hellaby chipped in $4 million, with the remainder coming from executives and staff.
She declines to say how much Club Life expects to raise from brokers, adding that they can’t buy shares until they start writing business.
However, she indicates brokers are expected to own a substantial chunk of Club Life within five years. There will be no upper or lower limits on their shareholdings in the private company.
Last month Club Life handed the Public Trust the $500,000 deposit required from all new insurers.
It has also signed up two reinsurers, the Gerling Global Reinsurance Company and the Munich Reinsurance Company.
Ballantyne, who worked for Sovereign Insurance for 12 years, says Club Life’s products will have key difference from other insurers’ offerings.
Among these differences are cover for HIV - regardless of how it was contracted, and early, partial-payouts from the flagship trauma product in certain circumstances.
Ballantyne says risk benefits that can be added to the standard product include income, trauma and disability insurance, at agreed or indemnity value.
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