‘Merger led the way’

Press, 28 March 1981, Page 20

‘Merger led the way’

The merger of National Mutual and Commercial Union was a mammoth exercise which would be followed by other insurance companies in New Zealand, the national manager- (Mr Gil Hoskins) said. “We like to think that we led the way to the merger of South British and New Zealand Insurance,” he said at a news conference releasing his company’s annual report. He said there were too many small insurance companies in this country, and said one (Tasman Life) had gone out of business last year. He doubted whether other small companies could survive and compete with larger ones. The merger of the Com-

mercial Union and the National Mutual started from October 1. a day late for inclusion in the annual accounts. The integration process .Was continuing, and many benefits were emerging. After the merger National Mutual now manages the life assurance business of both companies, and the new jointly-owned Commercial Union specialises in fire and general insurance. , The growth in superannuation sales had been a feature, with contributions up 42 per cent. New company superannuation funds formed a major part of this result. More than 100 individual company funds were now managed by

National Mutual with assets in excess of $l4O million. National Mutual invested more than $2 million each week in New Zealand. Loans to individuals were a feature, with $28,300,000 or 42 per cent of all investments made available for housing or rural loans and loans against policies. The purchase of 3,100,000 shares in Carter Holt provided a significant interest in the forestry sector. The financial company, National Mutual Deposit and Loan, had a strong growth in size and profitability. It achieved a 29 per cent rise in income, a 38 per cent lift in public deposits, and a 30 per cent jump in total assets to $3O million.