Thursday 7th August 2008
|Text too small?|
The relationship will end on March 1, 2009, Tower group managing director Rob Flannagan said in a statement today.
The banking portfolio had grown to about NZ$70 million a year in annual premium revenue though revenue sharing arrangements "have resulted in Tower incurring an ongoing underwriting loss from the venture," it said.
The decision doesn't affect Tower's own customers, it said. The insurer and fund manager in May posted a 29% gain in first-half profit to NZ$20.2 million, excluding discontinued businesses.
Tower stock rose 1.9% to NZ$2.15 and has gained about 7% in the past month.
No comments yet
Tower to return 'initial' $70M of capital from sale of life business
Tower shares fall to 2-month low as licensing requirements may weigh on capital returns
Tower's licensing talks with RBNZ may push up minimum solvency requirements
Tower names Hancock as new chief executive, replacing Flannagan
Tower posts first-half profit as asset sales reap gains of $51.4 mln
Fidelity Life acquires most of Tower's life insurance business
Flannagan to leave Tower after strategic review, asset sales
Tower FY profit jumps 67%, to return $120M to shareholders; shares jump
Tower sells medical insurance unit to nib for $102M
Stiassny joins Tower board as questions linger over strategy