TWR - Tower Insurance.

[Jaa]

Its mostly all re-insured anyway.

The ANZ distribution loss has to hurt them. But who knows if they end up with the customers and no longer have to pay a cut to ANZ could work out ok.

[macduffy]

A solid interim result from Tower and the first interim divvy since 2002.

Now, that's got to be good news!

[macduffy]

I received my annual general insurance renewal letter today from ANZ - pages annotated "ANZCover General Insurance underwritten by Tower Insurance Limited" so I assume ANZ and Tower have settled their stoush over who "owns " these customers.

Of course, ANZ won't be writing any new business for Tower but at least it seems that existing relationships won't be disturbed.

[rotweiller]

With there current obnoxious TV ads, thank goodness I sold my shareholding and would not invest in an insurance premium.
They can go,and get lost as far as I am concerned.
Cheers

[RRR]

Not sure what else Tower needs to do to keep every one happy.

[macduffy]

I received my annual general insurance renewal letter today from ANZ - pages annotated "ANZCover General Insurance underwritten by Tower Insurance Limited" so I assume ANZ and Tower have settled their stoush over who "owns " these customers.

Of course, ANZ won't be writing any new business for Tower but at least it seems that existing relationships won't be disturbed.

It's official now.

The Court of Appeal has ruled that TWR retains the right to renew nearly 200,000 fire and general policies sold through ANZ and National Bank.

This is a significant part, about a third, of Tower's premium income.

Of course, ANZ will now direct new business to its new insurance partner Vero and retains the right for insureds' information to be available to Vero. TWR is to challenge this point.

[inghamp]

Hi All,

Quick question.
What would be a catalyst for price change. I heard a while ago that Tower was looking for companies to buy. would this decrease or increase their value?

[CJ]

would this decrease or increase their value?

Depends on what they buy and and what price. If their are synergys, even buying at market value can increase price.

In most cases that i see However, it asset acquistions just push the price down - just look at AIA last two purchases.

[macduffy]

Depends on what they buy and and what price. If their are synergys, even buying at market value can increase price.

In most cases that i see However, it asset acquistions just push the price down - just look at AIA last two purchases.

That's true. But the benefit of acquisitions often takes some time to become apparent - or to to be seen to be a mistake!

Some companies seem to have a knack for making acquisitions work. Aussie insurer Oamps was good at this - until it got taken over itself by Wesfarmers! CPB has also made some very successful acquisitions over the years.

[CJ]

I remember reading something years ago re mergers and acquistions in the US and the only people who really gained were teh management team who could justify higher salaries due to a bigger organisation. Empire building is only a good thing if it adds value.