Prudential to buy N.Z., Aust. Aetna

Press, 30 December 1988, Page 14

Prudential to buy N.Z., Aust. Aetna

PA Nelson Prudential Assurance is buying the Australian and New Zealand insurance business of the United States-based life insurer, Aetna Life and Casualty. Prudential general manager, Mr Boyd Klap, said in Nelson yesterday that the move fitted his company’s expansion plans in the New Zealand life insurance market. An Aetna spokesman in Sydney said the purchase price was sAust9B.s million (SNZI34M) with an adjustment to be made for the value of property at the end of this year. Aetna in New Zealand is Aucklandbased with about a fifth of the total assets of Prudential (about S9SM compared with $435M). Aetna had income this year of about S33M compared with SII4M for Prudential.

“Aetna has established a sound market

presence in New Zealand and is a good match for the larger Prudential,” Mr Klap said. The purchase would make Prudential New Zealand’s fourth largest life company in terms of new business premium income, he said. The acquisition is subject to approval by the Australian Foreign Investment Review Board and the New Zealand Commerce Commission. The Aetna purchase is another step by Prudential to secure its position in the New Zealand life insurance market.

In January, 1986, it acquired the General Assurance Life business. When General bought NZI Corp the partnership was severed, with Prudential taking the life business and General the fire and general business. Six months ago Prudential bought the Noble Lowndes unit trust and recently launched two further unit trusts.