Insurer Tower to review ownership structure after reporting full-year net loss

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Tower is examining its ownership structure.
Photo: 123rf

Insurer Tower says it will remain business as usual as it undertakes a strategic review of its ownership structure.

In a brief market statement, the general insurance company said the review was supported by its largest shareholder, Bain Capital, with a 20 percent stake in the business.

“In our commitment to delivering long-term value to our shareholders, we believe that a thorough examination of our ownership structure is prudent at this time,” chair Michael Stiassny said.

“This strategic review will enable us to explore options that align with our objectives and position us for continued success in the marketplace.”

Tower provided a range of insurance products including home, contents and motor vehicle across New Zealand and the Pacific.

Financial adviser Goldman Sachs New Zealand was assisting with the review, which would look at the capital structure and the business’s competitiveness.

Tower said it would not comment further on the strategic review until the process was completed, which was expected to take several months.

In the meantime, it said no decisions would be made regarding any potential transaction or other outcome until the completion of the process.

Tower recently reported a full-year net loss following a couple of large catastrophic weather events over the past year, and had also exited its rural business.