Wednesday 17th July 2013
|Text too small?|
Tower, which has hived off its health insurance and investment units, is in talks with the Reserve Bank over proposed conditions as part of its licence and may have to lift its minimum solvency requirements.
The Auckland-based insurer has a provisional licence under relatively new prudential supervision laws and is in talks with the regulator as part of the licensing process, it said in a statement. Among proposed conditions include "an increase to minimum solvency margin," it said.
In its first-half report, Tower said it will have more than $127 million in capital above minimum solvency requirements after repaying its bonds and making a capital return. As at Sept. 30 last year, Tower Insurance had a solvency margin of $39 million, according the company's annual report.
The shares fell 0.5 percent to $1.99.
NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.
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 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
Tower lifts premiums for house, contents and motor cover