The company has for a number of years adopted what it calls the "fleet of ships" philosophy in its business where its has a number of different companies, which are all independent and charged with doing business their own way.
The idea is they are all part of a fleet heading in the same direction, but with each ship plotting its own course to get there.
The company has decided it needs to change the shape of its fleet, and reduce the number of ships, but increase their size.
Put another way it has reduced the number of frigates it had and opted instead for a smaller number of cruisers.
Group managing director James Boonzaier says that:
As part of this restructuring there have been a number of major personnel changes.
Ken Boag will move from the position of managing director Tower Life Australia to take up a newly created position of chief operating officer.
The idea of this move is that Boonzaier will then be able to focus on strategic issues including new business opportunities in Australia and New Zealand.
Stuart Fish, who is currently head of Tower Investment Savings in New Zealand, will take over the merged business that will be known as Tower Managed Funds.
Paul Bevin, who currently runs TAM in New Zealand, will become the managing director of the merged asset management business.
Boonzaier says the changes reflect the need for scale in its operations and the growing importance of the Australian market to the company.
He says 60 per cent of Tower's business now comes from across the Tasman.
The changes are expected to produce savings of between $5 million and $6 million in the 2000/01 financial year.
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