Start-ups get thumbs down
Anumberof the large established life companies aren’t giving the start-up operations in New Zealand much hope of either survival or profitability.
In recent years, three companies have set-up operations in New Zealand. The most recent is Club Life, while the others are Lumley and Pinnacle.
Lumley is taking a softly, softly approach to the life market, and Pinnacle appears to have been unsuccessful.
ASB Bank managing director Ralph Norris is quite dismissive of set-up operations.
“Personally, I think you’d have to be mad to establish an insurance company in this market. People who think that there’s some pot of gold out there will be sadly disappointed,” he says.
Recent industry figures from the Investment Savings and Insurance Association show sales of regular premium business have only grown by three per cent in the year to June, but commissions have gone up by 12 per cent.
—By Philip Macalister
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
