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: Friday, January 15th, 5:57PM

News

rss
Latest Headlines

Ralph Stewart's variable annuity business nearly there

The Reserve Bank has opened the market for variable annuity products which will help provide income to people in retirement.  The first product is likely to hit the market soon, once former AXA chief executive Ralph Stewart completes a round of capital raising for his new company.

Monday, April 27th 2015, 8:58PM 2 Comments

The Reserve Bank has issued an industry-wide solvency standard for variable annuities.

This is a consequence of the work Ralph Stewart kicked off over two years ago and means any licenced insurer in New Zealand who complies with the new standard to the satisfaction of the Reserve, could issue modern variable annuities in New Zealand.

Stewart is pleased with the standards produced by the Reserve Bank and that they will enable companies to provide products which allow New Zealanders to purchase guaranteed retirement income products that are flexible, tax-effective and offer minimum income levels based on returns from growth and income assets.”

“New Zealand is experiencing a significant change in the structure of its population. The number of people aged 65 and over has doubled since 1980 and may double again by 2036. The fastest growth will occur between 2011 and 2036, as the baby boomers move into the 65-plus age group.”

Stewart says the standards are “forward-thinking” and “sensibly conservative”.

One of the pleasing things, he says, is that the Reserve Bank will adjust solvency requirements over time and may relax them when an issuer continually demonstrates good risk management.

Stewart is in the market with a Foundation Shareholder offer to complete the capital raising efforts.

This offer aims to raise $2.25 million and closes on the 22 May, minimum investments of $50,000 are being offered, once completed the original founders of the business, will own 45% of the company; foundation shareholders will have 29% and new founders’ equity will account for 26% of capital.

The company offering the equity is the Retirement Income Group (RIG). It in turn owns the two operating companies  - Lifetime Asset Management (the PIE Issuer) and Lifetime Income Limited (The insurer).

Lifetime Asset Management is launching a new fund the Lifetime Income Fund, which also includes longevity insurance provided by Lifetime Income Limited.

Under the offer, up to 45 wholesale investors can subscribe for parcels of 50,000 shares, at $1 per share, in the Retirement Income Group.

The former name, NZ Income Group is no longer being used.

Tags: Ralph Stewart Retirement Income Group Variable Annuities

« Getting to know... Richard StubbsSovereign finally confirms intention to sell Select »

Special Offers

Comments from our readers

On 28 April 2015 at 9:53 am Majella said:
This is significantly good news, and thank you Ralph for driving a new and attractive option into the local market - I hope your business does extraordinarily well. The choice of the business name, though "Lifetime" - is that co-incidental? If so, will it cause an issue?
On 28 April 2015 at 4:15 pm Ralph Stewart said:
Sincere thanks, appreciate and thank you for the comment.

Fair to say lifetime is used by a number of advisors and advisory groups in NZ which you are clearly aware off.

It's a great name and for us it is ideal. Prior to launch we asked our legal advisers (DLA) to review and while in no way absolute it was felt that the distinction between The Lifetime Income Fund being the offer of a product and the other users offering advice was a practical distinction between users of the brand. As you note, this is however a very complex area.
Regards Ralph

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.09 3.25 3.39
ANZ Special - 2.49 2.69 2.79
ASB Bank 4.45 2.49 2.59 2.65
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.49 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.09 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online 2.50 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.25 2.35 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.45 2.45 2.65
Kainga Ora 4.43 2.93 3.07 3.24
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.30 3.50 3.50
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.65 2.65
Liberty 5.69 - - -
Nelson Building Society 4.95 ▼3.20 ▼3.24 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
Lender Flt 1yr 2yr 3yr
SBS Bank 4.54 2.99 3.09 3.15
SBS Bank Special - 2.49 2.59 2.65
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - - - -
The Co-operative Bank - Owner Occ 4.40 2.49 2.69 2.79
The Co-operative Bank - Standard 4.40 2.99 3.19 3.29
TSB Bank 5.34 3.29 3.29 3.59
TSB Special 4.54 2.49 2.49 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - ▼2.29 2.69 2.79
Median 4.54 2.95 2.99 2.97

Last updated: 14 January 2021 11:22am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com