Insurer Tower says it will be business as usual as it undertakes a strategic review of its ownership structure.
In a brief statement to the market, the general insurer said the review was supported by its largest shareholder, Bain Capital, which has a 20 per cent stake in the company.
“As part of our commitment to creating long-term value for our shareholders, we believe that a thorough review of our ownership structure is prudent at this time,” said chairman Michael Stiassny.
“This strategic review will allow us to explore options that align with our objectives and position us for continued success in the marketplace.”
Tower provided a range of insurance products including home, contents and motor across New Zealand and the Pacific.
Financial adviser Goldman Sachs New Zealand is assisting with the review, which will look at the company’s capital structure and competitiveness.
Tower said it would not comment further on the strategic review until the process was complete, which was expected to take several months.
In the meantime, it said no decisions would be made regarding any potential transaction or other outcome until the process is complete.
Tower recently reported a full year net loss following a number of major catastrophic weather events last year and had also exited its rural business.
