Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tower sells remaining life business to Foundation for $36M

Tower sells remaining life business to Foundation Life for $36 mln

July 1 (BusinessDesk) - Tower has sold its remaining life insurance business to Australian-owned Foundation Life (NZ) Holdings for $36 million, completing its transformation to a general insurer.

The sale of Tower Life (NZ) includes a payment of $34 million upfront and a further $2 million in two years, the Auckland-based company said in a statement. Tower Life had assets of more than $700 million as at March 31.

Tower kept Tower Life when it sold its health, life and investment units to focus on general insurance, which allowed the company to return about $172 million to shareholders. The company had put a value of $39 million on the business. The slimmed down Tower posted a 70 percent drop in first-half earnings, reflecting gains on asset sales a year earlier, although excluding those gains it turned to a $10 million profit from a year-earlier loss.

Foundation Life is owned b y Melbourne-based Foundation Life Nominees, according to Companies Office records.

Chief executive David Hancock said while his company had decided to retain Tower Life, Foundation Life "came to us with a proposition that recognised appropriate value for shareholders."

Tower reiterated that it may return further capital to shareholders once rebuilding in Canterbury is substantially completed at the end of 2015.

"We see opportunities for growth and are very focused on increasing our market share in general insurance, particularly in Key personal lines," Hancock said.

Tower stock last traded at $1.81 and has gained 3.4 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news