Sharechat Logo

Tower wins right to insure ANZ wealth division customers

Friday 25th June 2010

Text too small?

Tower has won Court of Appeal backing to renew policies sold through ANZ and National banks after the two parties fell out with the lenders wanting to transact with another policy writer.

The Court of Appeal upheld a March 2009 decision in the High Court that Tower was entitled to $70 million of premium income from customers of the lenders. The squabble is over some 100,000 accounts with insurance policies.

Tower’s shares (NZX: TWR ) fell 2.1% to $1.84 today on the NZX.

ANZ sought to reassure customers they wouldn’t be disadvantaged by the ruling. ANZ's shares fell 1.2% to A$22.55 on the ASX. The NZX shares, which track the parent company, fell about 2% to $27.70.

“Customers’ policies will not be impacted and policies will continue to be renewed and claims will be accepted and processed as usual,” said John Body, ANZ’s Wealth Division manager. The banks and Tower “would continue to work together to service these policies for customers and ensure they remain competitive.”

Tower managing director Rob Flannagan said he was “very pleased” with the ruling, which upholds the agency agreements between Tower and ANZ National Bank.

He too sought to reassure customers, saying they would “continue to benefit from their existing relationship with Tower insurance.”

  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:

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