Sharechat Logo

Tower to retain remaining NZ Life business after talks with potential buyers

Friday 3rd January 2014

Text too small?

Tower, which sold the majority of its life insurance business to Fidelity Life Assurance in May, says it has decided to retain the remaining life assets after talks with potential buyers.

The general insurer said it has ended talks with a number of interested parties and has decided not to sell Tower Life (NZ). It sold most of its life assets earlier this year for some $145 million in cash and liabilities.

"Tower believes there are a number of opportunities to continue to improve the business performance of the retained life business, and for a release of capital over time," said chief executive David Hancock.

Tower Life has 50,000 policies made up of participating and non-participating Life insurance policies, annuities and unit linked insurance policies. Policy and shareholder assets are managed under investment management agreements operated by a third party.

The insurer has sold a total of three businesses in the past year for a total of $370 million. It returned $120 million to shareholders in April and plans a further $70 million capital return via an off market voluntary share buyback offer that closes on Jan 23.

The shares rose 0.6 percent to $1.76 on the NZX today.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

PGW Governance Update
June 11th Morning Report
Genesis streamlines its retail business to accelerate Gen35
CVT - Comvita announces CEO transition
RAD - Radius Care Annual Meeting and Director Nominations
June 9th Morning Report
Synlait forecasts strong milk price for 2025/26
SkyCity to file NZICC Legal Proceedings against Fletchers
June 6th Morning Report
Metro's view of Viridian's Com Com application