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

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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