Must say that the increased dividend of 8cps was a pleasant surprise. A couple of years ago I'd almost given up Tower as a bad job, made the old NZ Govt Life look almost sexy!
So well done - a little light amid the gloom.
:)
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Must say that the increased dividend of 8cps was a pleasant surprise. A couple of years ago I'd almost given up Tower as a bad job, made the old NZ Govt Life look almost sexy!
So well done - a little light amid the gloom.
:)
so has TWR paid its divie yet use ASB sec for my NZX trading which is crap compared to my ASX e*trade platform
hi jb
the divi isn't due til 9 feb 09, and i couldn't find any reference to a record date.
the direct broking site doesn't have details either -- probably tower's fault.
the fully imputed 8 cps is good though.
i searched for the company's website... cheers.
I heard through the grapevine that Tower has just signed a deal to provide underwriting/insurance to dedicated Kiwibank Wealth Advisors. Small start but could be a big deal.
The banks do cream it off the insurance Co's
Most insurance companies pay brokers 90-100% of annual premium for life products as a base and anywhere from 30- 160% override commission depending how much business the broker writes with them. The banks write the most business by far and are therefore on the very highest of override.
This is all paid upfront first month or the broker can elect to have it paid as earned.
This is of course all writebackable if the business falls over within certain time limits (usually starting at 100% writeback before 12 mths and decreasing by 10% every month thereafter)
So in some cases a policy has to be in full force over 2 years before the insurance co makes any money off the Client. (notwithstanding what the ins co has done with the money to generate a return)
I like Tower as a Company, they have a good market presence and they are very competitive in the 50-60 age group for insurance
The relationship with ANZ National had with Tower was only for General Insurance (e.g. House, Contents, Car, Travel, etc) - and the commission received for selling those is two-tenths of bugger all. So I don't think there was any creaming of anything going on.
Perhaps because ANZ also has approval to market to the client base to retain them. I would suspect the majority of customers would rather continue to retain their "ANZ insurance cover" rather than shift over to a Tower Product involving a possible change of policy and direct debit etc.
Am considering an investment , any objections at 1.30?
From what i see the ANZ stuff well and truly priced in , gearing is low at around 17% and they have just completed a capital raising , so no debt worries till 2014.
Profitable buisness at a good price , or am i missing something?
No objection from me. I have these and have bought more at 131/132
Charts look poor, but with nta =132.98, p/e 6.1, div 6.1, now seems ok for the brave...