This week could be called the week of bail-outs. First it was the US government saving AIG from, what reports suggest, a fatal situation. Meanwhile back home rich-listers Mark Hotchin and Eric Watson stepped up to the plate with up to $96 million for Hanover Finance.
Friday, September 19th 2008, 4:30PM
Good Returns was first to report news on the Hanover bail-out and has a detailed story here. These guys have taken more than their fair share of flack over the state of Hanover and they deserve a big dollop of credit for being prepared to put that much capital into the business. The next step will be in a couple of weeks time when the full details are received and the audited accounts are released.
What is heartening is that the shareholders see a future for the company. As I have said before mezannine finance plays an important part in New Zealand's economy and we need organisations like Hanover.
Late last week, after the Weekly Wrap was sent out, the Commerce Commission said it was investigating Donal Curtin's disclosure when he was appointed deputy chairman. This enquiry is nothing more than bureaucratic arse-covering. Read Phil's Blog on the investigation.
This week has a bumper crop of Insurance News, thanks to all the happenings in the market. Obviously the main news has been what's happening to AIG, both in the United States and New Zealand. We have added some local comment to the original AIG bail-out story.
We would be interested to hear from advisers what they make of the situation. Are you still sending proposals to AIG? Have you considered moving your AIG business to another carrier? Email your thoughts to editor@goodreturns.co.nz.
Other Insurance News covers ratings updates for AMP and Asteron's parent, an award for a site selling insurance directly to consumers and accolades for Sovereign.
In addition to that there are two KiwiSaver-related stories, one about changes to mortgage diversion, which will allow more people to use this facility, the second tells of how one mortgage broker is 'educating' clients on KiwiSaver when the firm's head office has taken a stand opposing brokers advising on the savings scheme.
People news has been a little quiet this week. The biggest news is that AMP Capital is losing one of its key people to the Reserve Bank. Full details of that and changes to Southern Cross' board are here
