Tower launches strategic assessment of possession construction

New Zealand’s insurance coverage firm TOWER has commenced a strategic assessment of its possession construction to discover completely different choices for maximising worth for all of its shareholders.

This assessment is being supported by non-public funding firm Bain Capital, a 20% shareholder in Tower.

Goldman Sachs New Zealand is serving as Tower’s monetary adviser for the strategic assessment.

Other than maximising worth for shareholders, Tower additionally goals to optimise its present capital construction by means of the assessment.

This optimisation is anticipated to assist the corporate in delivering a robust platform that may tackle market competitiveness.

It expects this assessment course of to proceed for a number of months.

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The corporate mentioned it is not going to take any selections associated to potential transactions or different outcomes all through this era.

Based on Tower, till the assessment course of is full, the corporate’s board is not going to “remark additional on the strategic assessment”.

The corporate additionally famous that the newest transfer is not going to affect enterprise operations and that work will proceed as standard.

Tower chairman Michael Stiassny mentioned: “In our dedication to delivering long-term worth to our shareholders, we imagine {that a} thorough examination of our possession construction is prudent at the moment.

“This strategic assessment will allow us to discover choices that align with our targets and place us for continued success within the market.”

Based on a report by Finance Information Community, the newest announcement comes shortly after Tower introduced its fiscal 12 months 2022–23 annual outcomes, below which the corporate didn’t point out the requirement for any such strategic assessment.

The insurer’s annual outcomes had been primarily affected by the “hostile monetary impacts” of floods, storms and heavy rain in New Zealand in addition to in components of Australia and the Pacific, the report added.

Tower is a common insurer that provides a variety of insurance coverage merchandise, together with house, contents and motorcar, to its prospects throughout New Zealand and the Pacific.

Not too long ago, Tower partnered with insurtech firm CelsiusPro Group to improve its IT platform for parametric insurance coverage product.

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