Tower takes St George loss in the premiums book
The loss of St George life insurance business would result in an 8 per cent loss, or $60 million, from Tower Australia’s current $700 million in-force premiums book, the insurer has warned.
The loss of St George’s mandate, as exclusively reported in Money Management earlier this week, would also have an adverse impact of $4 million on Tower’s annualised contribution margin, it said, to be mitigated by associated cost reductions over the 2008-09 financial year.
While Tower acknowledged it was “disappointed” by St George’s decision to appoint a new life insurance partner, it anticipated that there would be “no profit impact in the 2008 year and a part impact in 2009, depending on when the transition takes place”.
Tower also acknowledged St George’s decision was not “unexpected”, acknowledging that it “does not have bank channel expertise, a quality St George was looking for in a life insurance partner”.
AUTHOR
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
