Arrow Life still in its quiver

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New life company Arrow didn’t quite get off the ground yesterday when applications closed, however the organisers reckon it’s still a goer.

Tuesday, February 3rd 2004, 9:33PM

by Philip Macalister

Arrow aims to be an adviser owned life and finance company. Late last year it went to the market looking for up to 62 advisers to each front up with $50,000 to set up the company original deadline was extended until February 3.

Arrow managing director Paul Bell says that target wasn’t reached yesterday.

"Whilst we are a lot further ahead (than before Christmas) we are probably not going to make our investment target."

He says the company now had three options. One was to discontinue the idea, a second was to relaunch the offer for another four months and the third was to repackage the offer so adviser could become shareholders with less than $50,000.

The first option "is not really an option," Bell says, and it is likely Arrow will adopt one of the other two.

He says there has been strong interest in the concept and a number of advisers have signed up "some real industry icons."

Bell says a number of factors have gone against the offer including launching it during the World Cup rugby tournament and having the Christmas period in the middle of the offer.

Also there has been some aggregation of advisers. That is a number of advisers have got together to put in their $50,000 as opposed to stumping up with that amount individually.

Another factor was that some advisers have been restructuring their businesses and didn’t have available capital.

He says the business concept has been "extremely well received."

Besides being adviser owned and operated Arrow would deliver quality life insurance products "and a service level second to none in the industry."

Arrow would also provide adviser shareholders with business development loans and other financial services to help them grow their businesses.

Bell says the sale of Club Life to ING has also helped because advisers can see the value in the business. One difference is that Arrow is not being set up as a company for sale.

Arrow pitches itself strongly to shareholders as a good investment. The investment statement says that "shareholders can expect returns of 15% per annum, after tax."

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