Fidelity Life becomes NZ’s third largest life insurer

Friday, 10 May 2013

Fidelity Life becomes NZ’s third largest life insurer with purchase of Tower life book

New Zealand’s largest locally owned and operated life insurance and investment company, Fidelity Life, will become the country’s third largest life insurer in terms of in-force market share after purchasing life insurance assets from Tower.

The acquisition announced today will see Fidelity Life assume management of Tower Health and Life Limited’s in-force business and the group risk business of Tower Life New Zealand Limited.

Fidelity Life Chairman, Ian Braddock, says the deal is significant for the company, taking it from fifth place in terms of market share to third, thus ensuring more opportunities for policy holders, staff and shareholders.

“Fidelity Life has always been interested in acquisition opportunities, following our previous purchases of the Lumley Life and Farmers Mutual Life businesses, and we feel the Tower Life business will be an excellent fit with our own,” he says.

Both companies have proud histories in New Zealand and a complementary dedication to supporting strong local communities. Fidelity Life was founded 40 years ago and has remained locally owned and operated ever since. Tower began life as the Government Life Insurance Office (Government Life) in 1869.

“It is important that we have a strong New Zealand owned company in our financial services industry. This will give Fidelity Life increased scale and we look forward to the opportunities it presents.”

Mr Braddock says there are a number of conditions to the deal including regulatory approvals, but he expects everything will be finalised within the next couple of months.

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