Partners Life figures revealed

Partners Life estimates that it accounted for around 10% of new insurance business written in the September quarter.

Thursday, December 8th 2011, 4:16PM 13 Comments

This means that it would be the third biggest for new API behind Sovereign and OnePath. However Partners Life chief executive Naomi Ballantyne reckons it will move into second place next quarter ahead of her old company OnePath Life.

Partners Life figures aren't official as the Investment and Savings Association, which complies figures, has refused Partner's membership application.

After publishing the latest ISI stats Good Returns approached Partners for its figures.

Ballantyne says the business is evenly split between new policies and exisiting business. She says the 50:50 split is the industry standard.

Partners has around 1000 advisers and groups on its books and around 700 are regularly producing business for the firm.

Ballantyne says that the average annual premium of business written is $2,800. This is higher than she expected.

She says it appears that most of the business is coming from OnePath and Sovereign, however Partners is not targeting OnePath business and it doesn't expect to impact on new business written for Sovereign, That business from the latter is more to do with independent advisers not wanting to put business with the company.

"We won't impact on Sovereign's new business," she says. "Sovereign is not really our competitor."

Business is coming from OnePath, she believes, as advisers aren't comfortable with the bank ownership and its new focus is on persistency rather than writing new business.

	API	Total API	Market share
Sovereign	11882	50232	23.65%
OnePath	6667	50232	13.27%
Partners	5276	50232	10.50%
Fidelity	4806	50232	9.57%
AMP/AXA	4758	50232	9.47%
Westpac	3436	50232	6.84%
AIA	3325	50232	6.62%
Tower	3120	50232	6.21%
Asteron	3030	50232	6.03%
BNZ	1747	50232	3.48%
Cigna	1201	50232	2.39%
Kiwibank	623	50232	1.24%
Pinnacle	361	50232	0.72%

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Comments from our readers

On 8 December 2011 at 4:30 pm Majella said:

50% 'EXISTING' BUSINESS.*!!!!!* Really???? Naomi, weren't you the crusader against 'churn' for years & years?

On 8 December 2011 at 5:01 pm gibo said:

Yer no surprise, some brokers have no ethics. I had a client of mine cancel their life policy I set up only 6 months ago and "churned" over to Partners Life, no increase in cover, on the basis of "rankings" saying the policy is better!!
Yer more commission.

On 8 December 2011 at 5:19 pm 6ftndr said:

I don't quite understand her logic, Sovereign is also owned by a bank?

She is getting business because her company is offering it and they pay well, end of story.

Interview her again when they start to lose business, in say 18 months.......

On 8 December 2011 at 5:49 pm Philip said:

What she is saying is that Sovereign gets a lot of business through its ASB relationship, its QFE and Sovnet. That new business will always go to Sovereign.
OnePath has a different distribution strategy which has ANZ in the mix but also independent financial advisers.
She believes some advisers are looking to put business with carriers other than Sovereign due to its changed adviser agreements.

On 8 December 2011 at 8:20 pm dp said:

There is one rule in business, never thrash your opposition. I agree with 6ftndr let's see the situation in 18 months time, what we tend to forget is that she put OnePath in the position they are now - she just did not have the tenacity to clean it up.
She is a leader that only acknowledges when things are going well then leaves a sinking ship.
OnePath recgonises it's ways at the moment and is trying desperately to change them - I reckon good on them for identifying weaknesses, and trying to fix them.

On 8 December 2011 at 8:27 pm Curious said:

Who is that outfit called ING you have listed in 2nd place?
Hope you arent't on the register of financial financial advisers as that's a very basic error.

On 9 December 2011 at 8:55 am celtic said:

Good to see the history revisionists are out in full force. I think you'll find OnePath was still in a very strong state when Naomi left, the downfall is solely on ridiculous bank style micromanagement.

On 9 December 2011 at 11:31 am Skeptic said:

I question that 50:50 split "industry standard". Certainly that's the first I've heard of it.

I will say that I think it's good Partner's Life have come into the foray. They've certainly been spicing things up in the industry. Although I will continue to be skeptical about anything Partners are saying, as I will continue to be skeptical about anything and everything, but looks like everyone's on their toes with this one.

With Partners Life, only time will tell whether their business model is sustainable. But hey, great for the current very short-term I say.

On 9 December 2011 at 1:14 pm Amused said:

As long as ANZ keep under resourcing OnePath (like they do everything else) other insurers such as Partners Life will inevitably see more and more business come their way. Less middle management appointments and a few more staff employed at OnePath's underwriting and operations level would go a long way to improving their current service to advisers. I have been in this industry long enough to know that ANZ always runs things on the smell of an oily rag so am yet to be convinced they will make the changes necessary at OnePath. As I have said before OnePath have some great products and people but if advisers can secure better cover for their clients elsewhere now (and have it done more quickly) it makes sense they would do so.

On 9 December 2011 at 4:25 pm Brent said:

Firstly in relation to dp's comments, I am disappointed that this type of comment is not moderated and removed. I thought the forum was not to be used for defamatory, abusive, or inappropriate comments. I read this as defamatory, and an assassination of a person’s character.
I am sure if dp took the time to review the ISI stats to get a view on persistency and the shape of the OnePath book.
I see that a number of long serving ClubLife/ING/OnePath staff have taken up roles at Partners Life. Isn’t the old saying “you don’t leave a company, you leave the manager”. Yeap, looks like OnePath have some soul searching, and perhaps dp, rather than lay the blame at the feet Naomi, you may want to look closer to home.
Ahh the old churn discussion. Good product, sharp price, rewarding clients with discounts, ease of doing business with. Sounds like a recipe for disaster. We can’t let that happen can we?
MODERATOR'S NOTE: Yes we moderate comments. DP's comment was marginal but we ruled OK as it was an honestly held opinion. Whether that opinion is correct or not is up to us to decide.

On 13 December 2011 at 11:22 am Amused said:

Well said Brent.

On 13 December 2011 at 7:04 pm Amused2 said:

I'm not sure anything is wrong with DP's comments.

There is clearly something wrong with setting up products which promise all things to all people - look at the state OnePath is in now - premiums rising, products being changed, staff redundancy.

How can anyone look at Partners and think this is a not a disaster waiting to happen for their clients. The product is virtually the same as OnePath's - and hopefully - for the poor, unsuspecting client the outcome is not the same also.

Shame on the group responsible for the major Sunday Star Times expose which has tarred us all with the same brush.

On 14 December 2011 at 3:39 pm Dirty Harry said:

just a side note. Next time we all get riled up about pinnacle and their ads/comments/practices just remember how utterly (and pleasingly) insignificant they are in the market. Had a quiet little chuckle at the number on that chart I did.

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Insurance

Partners Life figures revealed

Partners Life estimates that it accounted for around 10% of new insurance business written in the September quarter.

Thursday, December 8th 2011, 4:16PM 13 Comments

Comments from our readers

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