- The insurance industry had to face a challenging year amid the COVID-19 pandemic.
- AA Insurance received Consumer NZ’s People’s Choice award for the third time in a row for car insurance on 14 December 2021.
- Tower remains a resilient and well-capitalised business.
New Zealand has a small private insurance sector by global standards. The country has 88 licensed insurers and half of them are foreign owned.
As per the RBNZ quarterly survey based on premium revenue earned in the June quarter of 2021, general insurance represents 59% of reported large private insurer business in NZ, while life insurance and health insurance represent around 29% and 12%, respectively.
The insurance industry had to face a challenging year amid the COVID-19 pandemic.
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On this note, let’s look at the performance of these 3 prominent insurers in New Zealand.
AA Insurance Limited
AA Insurance provides various insurance options from car insurance to home and contents, protecting over 440K Kiwis.
The Company received Consumer NZ’s People’s Choice award for the third time in a row for car insurance on 14 December 2021. AA Insurance also has a A+ rating given by Standard and Poor’s.
Corporate Social Responsibility has been one of the key strategic focus areas for the Company. The Group donated over $121K to charities and onboarded 167 new people in 2020.
AIA New Zealand Limited
AIA New Zealand is a part of AIA Group and has been providing personal and business insurance facilities to Kiwis since 1981.
The Group awarded 10 grants and provided over $500K to support grassroots projects through AIA Vitality Business and Community Grants programme last month.
AIA plans to commit to a Science-Based Targets initiative that would help businesses with the most recent climate science skills to help attain the country’s pledge to become carbon neutral by 2050.
Tower Limited provides general insurance facilities across NZ. Tower witnessed a challenging year due to lower investment income, large house claims and COVID-19-induced inflationary strains.
The Group’s underlying profit fell by $7.6 million to $20.8 million for the year ended 30 September 2021. However, Tower remains resilient and well capitalised with the Board proposing a return of $30.4 million in excess capital to shareholders.
Tower continues to be well positioned for long-term growth.
Financial strength, focus on customers and increased digitalisation will be required by the insurance industry to thrive and reduce the impact of the pandemic.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)