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

 

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news