National Pacific assurance

Press, 1 December 1988, Page 29

National Pacific assurance

PA Auckland National Pzcific Corp chairman, Mr John Strahl, yesterday assured shareholders at the company’s annual meeting in Auckland that future inter-company transactions would be on an arm’s-length basis. “They would be done to the disadvantage of major shareholder, Government Life Corp, and not to the detriment of minorities,” he said. Inter-company deals would be resolved through independent directors, Mr Strahl said. Earlier in the year minority shareholders in National Insurance (N.Z) — since made a subsidiary of National Pacific — were buffeted somewhat by National Pacific and Inter Pacific Equity. The latter was then controlling shareholder of National Insurance. “You can’t -have a strong shareholder without the possibility of conflict of interests,” Mr Strahl said. "We see potential for advantages. We rely on the investment expertise of Government Life.” Mr Strahl defended the company’s activities over the year, saying shareholders’ funds had increased when other company’s shareholder funds had disappeared. “An increase in shareholders’ funds from $l4O million to $l4B million is not exactly ‘big cheese,’ but the directors managed to keep the company going. "National Pacific Corp made a good profit of $6 million, although this was clouded over by the financial community. National Pacific is expected to make about the same profit for the 1989 year.” All sharemarket losses are crystalised and finished with, said Mr Strahl. The accounts include a provision of $19.4 million for equity losses, he said. A further $B.l million has also been provided to take account of the Ariadne shares that National Pacific will be forced to pick up in October, 1989,' for 720 c each.