Weekly Wrap: What a week

It's been a full on week with a new chief executive at ING, more finance company collapses and new insurance products being rolled out.

Friday, June 27th 2008, 3:48PM

It's nice to see that ING have quickly found a replacement for its outgoing CEO Marc Lieberman, the new appointment appears to be quite different to the previous two (a young woman!). What is most interesting is that she has a strong life insurance background. Interesting as ING, although doing very well in the life market, is traditionally seen as being first and foremost an investment business. It's also interesting as it is already a strong leader in the life space. What can this mean? (If anything?)

Finance company news came thick and fast this week. Firstly, there was news of an intensive review and talk of a management buyout at Strategic Finance.

Next, St Laurence pulled out of the market, followed by its related company Dorchester Finance and also news that OPI (MFS) was suing its parent company in Australia over the unputtable put option. I guess it had to do this, but I wonder what the chances of success are?

As usual we would like to put some questions to OPI, but that is impossible (they won't talk). It is amazing that this legal action has not been announced to the NZX, as OPI is still a listed company, albeit suspended from trading.

We have lots of exclusive coverage on Good Returns about these stories, plus a Blog on the St Laurence move – which certainly surprised the market.

Maybe ratings do mean something after all?
St Laurence's decision to pull the pin on property lending has surprised many in the industry, including myself. [more]

There is good news for finance companies though. UDC had its rating reaffirmed and Marac has its bond offer in the market.

Today we talk to Marac managing director Brian Jolliffe about the offer and Marac.

Our insurance news this week includes TOWER Health and Life launching yet another new product (they are very busy at the moment), the next piece in our series from analyst Graeme Lindsay and an important update on what is happening with adviser regulation.

The biggest appointment this week was at ING, as mentioned earlier, however our People page has a new investment strategist at ASB and a new business development manager at UDC. Full details here.

A sort of related people story is news that Bridgecorp executive directors Rod Petricevic and Robert Roest face criminal charges over alleged false statements in a company prospectus. Hopefully there will be an appointment here.

Mortgage news this week has been firmly on how the banks are doing in this market. Check out what is happening at Kiwibank, ASB and TSB.

It has been a quiet week for home loan rate changes with just one bank, Westpac, moving rates.

It lowered its six-month rate by 10 points and its four and five-year rates by 5 points. Amongst the non-bank lenders General Finance, SBS and United Home Loans all changed rates. General Finance lowered its one, two and three-year rates by 20 points, United Home Loans reduced its one, two and five-year rates by a 50 points and SBS increased its floating rate by 25 points.

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