The two groups will work together and Lifetime will focus on life insurance and mortgages and Rothbury will do general insurance.
Under the deal Lifetime has acquired Rothbury’s life and mortgage businesses; Rothbury gets Lifetime’s general business and it has taken a cornerstone shareholding in Lifetime Group.
Rothbury, which is the fourth largest general broker in New Zealand and part of the ASX-listed Steadfast Group, has bought a 19.5% stake in the business valued at $4.5 million.
Lifetime has 63 shareholders made up of its advisers, management and some investors. Under its model advisers can take an ownership stake in the business.
Lifetime Group chief executive Mike Jones says the transaction is part of a 36-month growth plan. Over the past two years the business has been improving its systems and processes and next year it will look to start growing again.
“For a Lifetime shareholder, the merger delivers sustainable dividends, the backing of a large corporate and great potential for capital value growth.”
When the deal is completed Lifetime will increase the number of life advisers from 35 to 45 audit will have annual premium income of between $3 million and $3.5 million annually.
Its mortgage business will have another eight brokers, bringing the total to 19, and it will generate around $400 million in loans a year.
Jones says the transaction will give the Lifetime business better geographic coverage as Rothbury has offices in the North Island which will compliment Lifetime’s South Island bias.
READ ON for more on the Lifetime Group
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