| Decision | Consent granted Section 13(1)(c) Overseas Investment Act 2005 |
| Decision maker | Overseas Investment Office |
| Decision Date | 26 September 2018 |
| Investment | An overseas investment in significant business assets, being the Applicant’s acquisition of property in New Zealand used in carrying on business in New Zealand for consideration exceeding $100m. The Applicant issuing replacement life insurance policies to certain policyholders of the Vendor in return for a single premium payment made by the Vendor on behalf of those policyholders for the issued policies. |
| Asset Value | Dependant on the number of policyholders to whom the Applicant will issue policies |
| Applicant | Cigna Life Insurance New Zealand Limited United States Public (60.828%) Various overseas persons (17.21%) The Vanguard Group, Inc., United States of America (7.044%) T. Rowe Price Associates, Inc., United States of America (6.998%) United Kingdom Public (6.03%) Canada Public (1.89%) |
| Vendor | Foundation Life (NZ) Limited Various overseas persons (100%) |
| Background | The Vendor is an insurance company focused on the long-term prudential management of life insurance portfolios which are no longer actively marketed. The Applicant provides life insurance, funeral insurance, income protection insurance, accidental death insurance, trauma insurance and travel insurance products and services in New Zealand. The Applicant has operated in New Zealand for 100 years and currently has over 250,000 customers. The Vendor reviewed its existing portfolio of participating insurance policies and determined that it would be in the best interest of policyholders to offer policyholders replacement life insurance, a cash value or a combination of replacement life insurance and cash through a scheme of arrangement with policyholders. As part of the scheme proposal, the vendor entered into an agreement with the Applicant whereby the Applicant would issue replacement life insurance policies to certain policyholders of the Vendor in return for a single premium payment made by the Vendor on behalf of those policyholders. The scheme proposal is subject to approval by the vendor’s participating policyholders and the New Zealand courts. The Applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The Applicant has also demonstrated financial commitment to the investment. |
| More information | Glenn Shewan Bell Gully PO Box 4199 AUCKLAND 1140 |
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