Sharechat Logo

Dorchester Pacific to exit life insurance, seek licence for non-life business

Tuesday 20th December 2011

Text too small?

Dorchester Pacific, which avoided failure last year by convincing investors to accept a debt-for-equity swap, will exit the life insurance business and concentrate on writing non-life policies after a review of its savings and insurance operations.

The company plans to run out its existing term life business and has closed its Dorchester SuperLife savings product with life cover to new policyholders, it said in a statement.

Dorchester will seek an insurance licence under the new Insurance (Prudential Supervision) Act to focus on non-life products, it said.

“As was indicated at the recent AGM, Dorchester Life’s insurance business has become complex for its overall scale and the new regulatory environment will add considerable costs to the operation in its present form,” chief executive Paul Byrnes said.

Improved returns from insurance will be achieved with “a greater focus on consumer insurance products aligned to Dorchester’s lending business,” he said.

Costs of the changes “are not very significant” and will be taken in the year ending March 31, 2012, he said. “The new consumer insurance product sales together with lower overheads and operating costs in the division going forward are expected to produce a higher profit for the insurance division next year.”

That would help Dorchester Pacific to achieve its target of a “better than break-even trading result”, he said.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

18th October 2021 Morning Report
T&G Global Limited (NZX: TGG) FY21 Earnings Guidance Update
Arvida Group Limited (NZX: ARV) Successful Completion of $155m Placement
FreshLeaf: Cannabis on course to be 'medicine of the masses'
Arvida Group Limited (NZX: ARV) to Acquire Arena Living Retirement Living Portfolio
My Food Bag Group Limited (NZX: MFB) Market Update and HY Results Announcement Date
Harmoney Corp Limited (NZX: HMY) Delivers Record September Quarter
Vital Healthcare Property Trust (NZX: VHP) Announces Successful Completion of $115m Placement
14th October 2021 Morning Report
General Capital Limited (NZX: GEN) Completes Greenfern Listing