TWR - Tower Insurance.

[Jaa]

Antipodean that may be about right but it ignores the clear risk to the book.

ANZ now has every incentive to get their customers to switch to their current insurance partners, Vero. So expect the $40m to decrease over time.

Worth it, if it lets them turn off their old IT systems. Otherwise, maybe a forced purchase by Tower?

[Antipodean]

maybe TradeMe insurance; isn't that underwritten as well? haha

Trademe insurance is already underwritten by Tower

Antipodean that may be about right but it ignores the clear risk to the book.

ANZ now has every incentive to get their customers to switch to their current insurance partners, Vero. So expect the $40m to decrease over time.

Yes ANZ have full incentive to move that book now, assuming there isn't anything in the purchase agreement that either forbids it, restricts it, or changes the price depending on the book volume at March 12. In any case if these policies have been around since 2009, I can't imagine a flood of them will move in the next two and a half weeks.

[nztx]

Antipodean that may be about right but it ignores the clear risk to the book.

ANZ now has every incentive to get their customers to switch to their current insurance partners, Vero. So expect the $40m to decrease over time.

Worth it, if it lets them turn off their old IT systems. Otherwise, maybe a forced purchase by Tower?

Buy ANZ instead you reckon ?

[Poet]

Antipodean that may be about right but it ignores the clear risk to the book.

ANZ now has every incentive to get their customers to switch to their current insurance partners, Vero. So expect the $40m to decrease over time.

Worth it, if it lets them turn off their old IT systems. Otherwise, maybe a forced purchase by Tower?

It would be standard commercial practice to write a non-compete clause into a deal like this. Those customers will be forever barred to ANZ

[Jaa]

It would be standard commercial practice to write a non-compete clause into a deal like this. Those customers will be forever barred to ANZ

Your dreaming. The customer is always free to decide and your friendly local bank teller will always be incentivised to offer you a new better deal. Churn is as old as insurance.

[Poet]

Your dreaming. The customer is always free to decide and your friendly local bank teller will always be incentivised to offer you a new better deal. Churn is as old as insurance.

A bank teller? Jeez, haven't seen one of those for many years - do they still exist?
The only way ANZ would be marketing to these customers would be on-line, and I'm thinking that will be prohibited in the deal

[JohnnyTheHorse]

This does point to no dividends being paid within at least the next half year. However that money isn't 'lost', it will just appear in the capitalisation of the stock over time due to increased future profits. The board and management have recently purchased materially large positions in the stock. They believe using profits for acquisitions is the best use of funding rather than paying out dividends (which will be taxed) at this stage.

I agree with them. They have finished heavy investment into their digital platform which will create large efficiencies. They are now in a position to scale the business with little extra admin cost. I still see the end game of Bain Capital being a sale of the business. The larger they can grow their loan books the more attractive they become to large overseas players who want a meaningful position in the NZ and the Pacific.

[Southern Lad]

This does point to no dividends being paid within at least the next half year.

TWR did a capital raise in September 2019 in large part because the RBNZ wouldn't count the then disputed EQC receivable for capital adequacy purposes. With that position now resolved (albeit for an amount less than sought), TWR will have excess capital that it may have difficulty returning to shareholders tax effectively due to an absence of any imputation credits. I therefore favour investing the excess capital to grow the business.

The ability of insurers to pay dividends continues to be under RBNZ surveillance due to COVID concerns on liquidity. Assuming TWR has a more than adequate capital position, small unimputed dividends hopefully won't be far off.

[ados_nz]

Boys & Girls - was that your dividend that just disappeared out the door ?

TWR holders what remains of them appear to be a patient crew, perhaps too much so
when it comes to swallowing a trail of excuses on why no Divvie .. not even a smell
of one for long periods ..

Apparently not..... https://www.nzx.com/announcements/367996

"Tower’s consistent growth supports return to dividends"

[Scrunch]

Apparently not..... https://www.nzx.com/announcements/367996

"Tower’s consistent growth supports return to dividends"

And an intention that the half year dividend is 2.5c