tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, June 24th, 6:35PM

Insurance

rss
Latest Headlines

Last of Tower’s life book sold

Tower has done a u-turn and sold its remaining life business, to Foundation Life in a deal worth $36 million.

Tuesday, July 1st 2014, 11:31AM

The book, numbering 50,000 policies, is made up of annuities, unit linked policies, whole-of-life policies book and a small amount of traditional non-participating term insurance.

The buyer, Foundation Life is a private company that is focused on the acquisition and long term prudential management of life insurance portfolios which are no longer being actively marketed.

In Januray Tower advised the NZX it s would retain the business "following an evaluation of options for divesting (it)."

It had completed a formal process with a number of interested parties and had "determined that greater shareholder value would be realised by retaining the business."

Although Tower had decided not to sell Tower Life it had "continued to receive approaches and assessed these against the potential shareholder value that could be delivered," chief executive David Hnacock said.

“Foundation Life came to us with a proposition that recognised appropriate value for shareholders,” he said.

In-coming Tower chairman David Harrison, said “the Foundation Life team is looking forward to working with the many stakeholders, including policy holders and staff, to further strengthen and improve the business.”

“There will be no changes to their existing policies under Foundation Life.”

Foundation are paying $34 million on completion of the deal, and a further $2 million payable two years after completion.

« KiwiSaver-style scheme for health insurance suggestedPartners: No threat to advisers »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

PIC Insurance Brokers partners with RE/MAX New Zealand
PIC Insurance Brokers has entered into a new strategic partnership with real estate company RE/MAX New Zealand as the exclusive insurance broker.

New customers get 3-months' premium-free on Fidelity Life
Fidelity Life has announced a special offer to cover new customers’ premiums for the first 3-months of their policies.

Premium relief for customers in drought areas
Fidelity Life offers premium relief to drought-affected customers

Fidelity Life relaunches customer engagement initiative
Once again Fidelity Life wants to recognise advisers who go above and beyond to deliver amazing customer service.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x