Friday 13th March 2009 |
Text too small? |
The High Court rejected a claim from ANZ and ING, according to a statement from Tower managing director Rob Flannagan. Tower was entitled to renew policies with the bank's customers even after the firm's policy agreement had ended, he said, citing a ruling from Justice Wylie.
The judgment said the bank's customers became Tower's clients as well when they were sold Tower policies. It was "somewhat arrogant for the bank to now try to interfere with that contractual relationship simply because it allowed the policies to be sold with its brands on them," according to the statement.
At stake is ownership of some 196,000 policies, held by 110,000 policyholders.
ANZ National also sought orders requiring Tower to hand over policy information to the bank so it could pass the details to Vero. Justice Wylie ruled that ANZ National was entitled to receive the information but Tower couldn't hand it over with the consent of the customers. ANZ National was prohibited from handing the data to Vero, the statement said.
A hearing has yet to be fixed for a counterclaim from Tower.
Shares of Tower fell 3% to $1.30 and are down 12% this year.
No comments yet
Tower to return 'initial' $70M of capital from sale of life business
Tower shares fall to 2-month low as licensing requirements may weigh on capital returns
Tower's licensing talks with RBNZ may push up minimum solvency requirements
Tower names Hancock as new chief executive, replacing Flannagan
Tower posts first-half profit as asset sales reap gains of $51.4 mln
Fidelity Life acquires most of Tower's life insurance business
Flannagan to leave Tower after strategic review, asset sales
Tower FY profit jumps 67%, to return $120M to shareholders; shares jump
Tower sells medical insurance unit to nib for $102M
Stiassny joins Tower board as questions linger over strategy