So Tower sells its life business to a bunch of guys in Australia in 2014 for $36m under the watch of Michael Stiassny. Stuff today says that business is being closed down and its shareholders may be getting $160m. Not a bad return imo.
So Tower sells its life business to a bunch of guys in Australia in 2014 for $36m under the watch of Michael Stiassny. Stuff today says that business is being closed down and its shareholders may be getting $160m. Not a bad return imo.
One of those financial engineering deal by the buyers - basically to close out the policies of those who have been paying for their life covers over a long period in time.
As for Tower, it was a case of selling assets and businesses or go under - not much choice there.
You'd think with the general insurance side of things seemingly doing well-ish for the big Aussie insures (or at least the market thinks so with a generally positive share price reaction after results are announced) that things would be going well-ish for Tower...
You'd think with the general insurance side of things seemingly doing well-ish for the big Aussie insures (or at least the market thinks so with a generally positive share price reaction after results are announced) that things would be going well-ish for Tower...
TJ - I might have to eat sand with this prediction but I'd say Tower will be up 10%+ after they next report as think the market is seriously underestimating the underlying improvement in their business. Premium hikes and volume growth despite losing a few higher risk rated customers they don't actually want anymore.
Wonder when they will provide the next update - last year they provided an updated on 31/08 for 4 months through 31/07 would imagine they might follow the same logic this year ....
Agreed imagine things are in line hence no need to provide a update to market. This being said would be good to see further progress in the FY result, resumption of a divi wouldn't do any harm either ....
Time is a great teacher, but unfortunately it kills all its pupils
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Originally Posted by Dassets
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