By RICHARD BRADDELL
Hellaby Holdings hopes a new life insurance firm called Club Life will emulate the stellar growth recorded by Sovereign in its 12 years of existence.
From nothing, Sovereign was a $235 million company when ASB took it over at the end of 1998, and Club Life's founders see
an opportunity to repeat that success given the reduction in life insurers from 39 a decade ago to 12, most of them foreign-owned.
"If we do a quarter as well as Sovereign did over a 10-year period, we will be very pleased," said Naomi Ballentyne, Club Life's inaugural chief executive and former Sovereign chief operating officer.
Hellaby will inject $4 million of an initial $5.5 million capital, and expects the new venture to beginselling life products from June or July.
The balance of the capital will be subscribed by management and associated parties, including Ms Ballentyne, who could end up with 12 per cent of the company.
She said she had been preparing the business plan for a new life operation at the same time as Hellaby had been investigating what it considered to be a gap in the market for a locally-owned insurer.
Hellaby managing director David Houldsworth said it was natural for them to come together.
Club Life will rely largely on financial advisers and brokers for distribution.
It is hoping to cement relationships with its distributors by giving them the opportunity to subscribe for a further $1 million in shares over the next 12 months.
