Tower highlights Aussie focus

By Phil Boeyen, ShareChat Business News Editor

Wednesday 5th December 2001

Tower (NZSE: TWR) wants a bigger slice of the Australian wealth management market and is redeploying some top executives to focus on that goal.

The Wellington-based insurance and financial company says it has undertaken an extensive operational review and the outcomes of that will be implemented over the next 18 months.

MD James Boonzaier says these include redefining the group's core business with an even greater focus on wealth creation, and a commitment to make more use of alliances and merging or divestment of non-core operations.

The company is also promising more effective management of distribution and alliance activities in Australia.

To achieve the goals the company says its chief operating executive, Ken Boag, will assume direct responsibility for multi-channel distribution businesses across the Tasman and the head of managed funds, Stuart Fish, will co-ordinate and monitor the new strategies from Sydney.

Mr Boonzaier says he, too, will be spending more time in Australia.

"Key tasks over the next 12 months include reorganising distribution channels in Australia to align with changes arising from the Financial Services Reform Act and building the Tower brand in target markets.

"In the 2001 financial year, brand awareness in Australia rose from 20% to 31%, according to Ray Morgan research, but much more work needs to be done."

Tower has previously talked about moving its head office to Australia but there has been no further word on the likelihood of a move in Wednesday's announcement.

Mr Boonzaier says further details of Tower's business strategy will be released in briefings planned for the first quarter of 2002.

Tower released its profit on Wednesday reporting a surplus of $77.2 million for the year ended September.

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