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News that GE is looking to sell or change its ownership of Wizard Home Loans is perhaps the first sign of many changes to hit the financial services market in New Zealand.
The reason, in a nutshell is that GE needs to get rid of some assets due to market issues back in the United States.
It isn't the only one. We have seen many times before that when big multi-national companies run into troubles and issues, one of the first things they do is hock off, so-called, non-core assets, or, as it seems, the ones furthest away from home.
That puts New Zealand at the top of the list as it is on the other side of the world from Europe and the United States.
My take on this situation is that many more assets will be up for sale. This week alone I have heard that Asteron is on the market. (Asteron is owned by Suncorp Metway, which is not quite on the other side of the world). Also one has to wonder about AIG. Those who follow international insurance news will be well aware that the parent company is facing, let's say, interesting times.
Although there has been little rationalisation and consolidation in the industry at the manufacturer level, the odds are reasonable that that may change soon.
As for the advisory, or distributor space, well it's like musical chairs in the investment, insurance and mortgage broking spaces. More on that later.
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