Tower’s licensing talks with RBNZ may push up minimum solvency requirements
The Auckland-based insurer has a provisional licence under relatively new prudential supervision laws.
Tower, which has sold off its health insurance and investment units, is in talks with the Reserve Bank over proposed conditions as part of its licence and may have to lift its minimum solvency requirements.
The Auckland-based insurer has a provisional licence under relatively new prudential supervision laws and is in talks with the regulator as part of the licensing process, it says in a statement.
Among proposed conditions include "an increase to minimum solvency margin", it says.
In its first-half report, Tower said it will have more than $127 million in capital above minimum solvency requirements after repaying its bonds and making a capital return.
As at September 30 last year, Tower Insurance had a solvency margin of $39 million, according the company's annual report.
The shares fell 0.5% to $1.99.
(BusinessDesk)
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Tower’s licensing talks with RBNZ may push up minimum solvency requirements
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