Tower returns life insurance investment to shareholders
New Zealand insurer Tower is returning $70 million to shareholders after selling off the bulk of its life insurance business.
Tower CEO David Hancock said the initial return of $70 million would be finalised "shortly", while the promised full return of $114.5 million would be made "when appropriate".
The business would continue its prudent approach to capital management, with staged refunds in line with minimum solvency market requirements, he said.
"We continue to review our capital management plan following the issue of full insurance licences for our general insurance and retained life insurance businesses," Hancock added.
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.