Partners Life’s parent company, Daiichi Life Group, says it is targeting completion of the planned acquisition of Fidelity Life, between March and July 2027, subject to approval by relevant authorities.
A statement by Daiichi Life, which acquired Partners Life’s holding company, Partners Group Holdings (PNZ) in November 2022, states the acquisition price is NZ$630 million.
It says the acquisition is expected to be conducted by way of a capital injection from the Company’s intermediate holding company to PNZ, following which PNZ will acquire all shares of Fidelity Life.
“Through the Acquisition, PNZ aims to benefit from the complementary strengths of the two businesses, strengthen the competitiveness of its life insurance business in New Zealand, and achieve sustainable growth,” the statement notes.
Daiichi Life says it expects the acquisition “..to enhance its position in New Zealand’s life insurance market” and that it’s expected to contribute around NZ$60 million annually to its Adjusted Profit during the next Mid-Term Management Plan (MTP) period “helping expand the earnings base of our overseas life insurance business and improve capital efficiency.”
As to the strategic rationale for the acquisition the Daiichi Life statement lays out:
Expanding Business Scale:
- Creating a stronger and more sustainable platform for long-term growth
- Enhance the ability to invest in customer propositions, distribution capabilities and operational excellence
Complementary Distribution Platforms:
- Like PNZ, Fidelity Life distributes protection products through independent financial adviser channels
- Fidelity Life has strengths in customer segments and distribution channels that complement PNZ’s, including suburban and regional IFAs and group insurance channels
Improving Earnings and Capital Efficiency:
- Expand the earnings base of the overseas life insurance business
- Contribute to improved capital efficiency and sustainable profit growth
The statement also details Fidelity Life’s shareholders as being Guardians of New Zealand Superannuation with 49.62%; Ngāi Tahu Investments with 24.93%; Fidelity Family Account at 14.64% and other shareholders holding 10.81%.
Click here to see the full statement.
