Tower wins right to insure ANZ wealth division customers
Tower has won Court of Appeal backing to renew policies sold through ANZ and National banks after the two parties fell out with the lenders wanting to transact with another policy writer.
Friday, June 25th 2010, 5:02PM
by BusinessDesk
The Court of Appeal upheld a March 2009 decision in the High Court that Tower was entitled to $70 million of premium income from customers of the lenders. The squabble is over some 100,000 accounts with insurance policies.
Tower's shares (NZX: TWR ) fell 2.1% to $1.84 today on the NZX.
ANZ sought to reassure customers they wouldn't be disadvantaged by the ruling. ANZ's shares fell 1.2% to A$22.55 on the ASX. The NZX shares, which track the parent company, fell about 2% to $27.70.
"Customers' policies will not be impacted and policies will continue to be renewed and claims will be accepted and processed as usual," said John Body, ANZ's Wealth Division manager. The banks and Tower "would continue to work together to service these policies for customers and ensure they remain competitive."
Tower managing director Rob Flannagan said he was "very pleased" with the ruling, which upholds the agency agreements between Tower and ANZ National Bank.
He too sought to reassure customers, saying they would "continue to benefit from their existing relationship with Tower insurance."
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