Orange Insurance squeezed dry

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The business set up to distribute life insurance through Money Managers has been put into voluntary administration and it is understood the policies will be transferred to a major insurance company.

Thursday, November 13th 2008, 12:20PM

Money Managers founder Doug Somers-Edgar established Orange Insurance in 2005, with the aim of distributing policies through the financial planning firm’s branches. Part of the belief was that advisers needed to have more than one string to their bow.

(See original story here)

The Orange business appears not to have made a lot of traction with Money Managers advisers as it made a net loss of $459,000 in the year to March 31, and a loss of $290,000 in the March 2007 year. Net assets fell from $266,000 to $21,000 during this time.

The policies were underwritten by reinsurer Hanover Re.

Earlier this year Money Managers was sold to a group comprising of NZ Funds Management and advisers; Orange has always been owned by Somers-Edgar.

At the end of last month Orange Insurance’s director, Somers-Edgar appointed Stephen Tietjens and Laurie Chilcott of Accru Smith Chilcott as voluntary administrators.

Good Returns understands that Orange is in the process of transferring its policies to a major insurer – most likely Sovereign.

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