Foundation Life Transfers Annuity and Unit-linked Policies to Lifetime Income

PRESS RELEASE - 5 October 2017

Following approval from the Reserve Bank of New Zealand (RBNZ) earlier this month, Foundation Life (NZ) Limited (Foundation Life) – which took over the Tower legacy life insurance book in 2014 – is transferring ~$35 million of annuity and unit-linked business to Lifetime Income Limited (Lifetime Income). The planned transfer dates are 02 November 2017 for Annuity Policies, and prior to 01 December 2017 for Unit-linked Investment Policies.

Chief Executive of Foundation Life, Mr Grant Piercy, said “the closed and legacy Annuity and Unit-linked business was only a very small portion of Foundation Life’s New Zealand business. Annuities in particular were a specialised product in which Lifetime has clear expertise. We felt our pensioners and unit-linked policy holders who are approaching or in retirement could secure a greater number of options from a dedicated retirement specialist such as Lifetime.”

The transaction required actuarial review by the appointed actuaries of both Foundation Life, Lifetime and an independent actuary, Mr Bernie Higgins. Members were consulted and the proposed transaction and final approval was approved by the RBNZ.

The transaction involves ~800 policy holders and assets to the value of ~$35 million.

Managing Director of Lifetime, Mr Ralph Stewart, said “we are grateful to have had the opportunity to work with Foundation Life and look forward to offering Foundation Life policy holders a dedicated range of guaranteed retirement income solutions”.

For further Information please contact:
Grant Piercy 021 47 85 53
Chief Executive This email address is being protected from spambots. You need JavaScript enabled to view it.
Foundation Life (NZ) Limited
Ralph Stewart 021 89 55 33
Managing Director This email address is being protected from spambots. You need JavaScript enabled to view it.
Lifetime Income Limited

Foundation Life (NZ) Holdings Limited purchases TOWER Life (N.Z.) Limited

(Auckland, NZ) On 25 August 2014, TOWER Limited announced that it has sold its remaining life business, TOWER Life (N.Z.) Limited to Foundation Life (NZ) Holdings Limited ("Foundation Life"), subject to conditions precedent including regulatory approvals. The aggregate value of the transaction is $36 million.

Foundation Life is a private company that is focused on the acquisition and long term prudential management of life insurance portfolios which are no longer being actively marketed.

TOWER Life (N.Z.) Limited comprises TOWER’s residual "run-off" life business including a participating book, annuity business, unit linked book and a small amount of traditional non-participating term insurance. TOWER Life (N.Z.) Limited had total assets of more than $700 million as at 31 March 2014.

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