What to do with $100 million

[GOOD RETURNS TV] The NZ Superannuation Fund is looking to spend $100 million taking a 41% stake in Fidelity Life. The insurer's chief executive Nadine Tereora explains what this means for advisers.

Thursday, November 16th 2017, 12:48PM

Fidelity Life chief executive Nadine Tereora says a $100 million investment from the NZ Super Fund has arrived at the perfect time.

The investment, which gives the fund a 41% stake in the insurer, includes $75m of new capital.

Tereora said she was thrilled with the deal.

“It’s no secret that we’ve been growing exponentially over the last couple of years. We’re also very future-focused, and we really needed some further capital to fund our strategy going forward. Given that we’ve got regulatory change on the horizon and all of the changing sands of the industry, it absolutely made sense to get capital in at this time.”

She said the investment spoke to the credibility of the Fidelity Life business and would help its product innovation, including more tools for advisers.

“I think it really is a solid signal to our adviser community that there is absolutely a future in the advice industry. For us, it just reinforces the fact that our strategy is sound, when it comes to supporting independent financial advisers, and making sure that we continue to innovate product in a way that enables them to reach more Kiwis.”

Customers wanted more from their advisers, Tereora said, and developing technology to help them would be a key part of Fidelity’s strategy.

“A digital strategy is really all about enabling different ways for customers to interact with both their adviser and their life insurance product provider. It’s really making sure that they have access to the information they need, when they wish to access it, in a way they want to access it.”

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Tags: Fidelity Life financial advisers GRTV Life insurance Nadine Tereora NZ Super Fund regulation technology