Tower steps out of life with sale
New Zealand-based insurer, Tower Limited, has confirmed the sale of its residual life insurance business to Foundation Life Holdings Limited.
In a statement to the Australia Securities Exchange (ASX) this morning, Tower chief executive, David Hancock, confirmed that all conditions for the $36 million deal had been satisfied, with settlement expected to take place on 29 August 2014.
"Tower is committed to delivering attractive shareholder returns by growing a general insurance business that is a leading light in New Zealand and the Pacific," he said.
"We see opportunities for growth and are very focused on increasing our market share in general insurance, particularly in key personal lines.
"Tower Life Limited has performed well and delivered solid results, and we expect the business to continue to flourish under new ownership."
Hancock added that the management of risk and capital remained a key element of the company's strategy to grow shareholder returns.
AUTHOR
Nicholas O'Donoghue
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
