N.Z. Ins. promotes finance company

Press, Volume CXI, Issue 32774, 26 November 1971, Page 16

N.Z. Ins. promotes finance company

The New Zealand Insurance Company, Ltd, will be the major shareholder in a new finance company, NZI Finance, Ltd, which is expected to begin operations soon. It is intended that the new company will transact all kinds of business normally done by finance companies.

New Zealand Insurance will be a partner of the Hong Kong and Shanghai Banking Corporation. A link with this bank was formed last May,

when it acquired a 24.5 per cent shareholding in New Zealand Investment Mortgage and Deposit Company, Ltd, Wellington, which became a subsidiary of N.Z.I. when it | took over the Victoria Insurance Company, Ltd, Melbourne. The Wellington company borrows money from solicitors and makes loans to its clients.

N.Z.I. Finance, which will be under the same manage- : ment, will expand the finance activities of N.Z.I. to other fields. N.Z.I. will hold 75.5 per cent of the capital. Hong Kong and Shanghai Banking will hold the balance.

Probably the new company will begin with the hire-pur-chase and leasing of capital equipment. Other types of business will follow later. The company does not intend to enter the consumer credit field immediately, although it may do so at a later stage. It will operate only in New Zealand.