By Nick Stride
Friday 29th August 2003
|Text too small?|
In the last quarter of 2002 alone, three British parent companies announced their exit from the region.
Royal & SunAlliance exited using the float option, leaving Promina as one of the largest listed players. Aviva sold CGU and NZI to Insurance Australia Group (IAG), and Wesfarmers is finalising the acquisition of the Australian and New Zealand subsidiaries of Edward Lumley Holdings.
The changes, according to rating agency Standard & Poor's, leave three of the four largest New Zealand general insurers in Australian hands.
Roger Bell, chief executive of Promina's New Zealand general insurance arm, Vero, pointed out Promina could not accurately be called an Australian company. It had a dual primary listing on the New Zealand and Australian stock exchanges, substantial New Zealand ownership and significant New Zealand assets and operations.
It had as good a claim to be a truly Australasian company as any, Mr Bell said. "That is a position that we value."
The ownership changes, Mr Bell said, also signalled a change in focus for all the companies concerned.
Despite consolidation the general insurance market is as competitive as it ever was.
But ownership by locally listed companies means boards and management will need to be even more focused on shareholder returns. That will leave little room for selling policies at massively discounted premiums in an effort to capture market share, the practice that eventually brought down HIH.
The name Vero had been settled on after careful thought and research, Mr Bell said.
The company wanted a name that couldn't be shortened into an acronym such as RSA, QBE, or IAG. It also wanted a distinctive name. No other insurance company started with "V" or sounded like Vero
No comments yet
Investore Property Limited (Investore) today announced its financial results for the twelve months ended 31 March 2020 (FY20).
Rabobank GDT Analysis - Event 261
SkyCity Entertainment Group Limited - Update on COVID-19 Impacts and Recent Trading
ANZ announces sale of UDC Finance
Foley Wines Limited Announces Harvest Result, Earnings Outlook and Development in Martinborough
JUST MY VIEW - BRENT KING
BLIS delivers substained profitable growth
Infratil - Full year results announcement for the year ended 31 March 2020
COMVITA LIMITED Announces NZ$50 Million Equity Raising to improve balance sheet flexibility and build resilience
GMT’s delivers statutory profit of $284.4 million before tax