Tower hopes that two into one adds up to growth

Financial services group Tower is to merge its New Zealand operations into a single organisation under one chief executive.

The company told the stock exchange yesterday that Tower New Zealand Insurance & Operations, run by chief executive Paul Hunt, and Tower New Zealand Investment Businesses, run by chief executive Paul Bevin, would merge.

Group managing director Keith Taylor said Hunt and Bevin had both said they were not interested in the new chief executive role.

Taylor said a more streamlined and cohesive structure for the company's New Zealand business would strengthen the brand.

"We are committed to both of these businesses and the strategy for Tower New Zealand over the next few years is one of substantial growth and further improvement in its market position," Taylor said.

"The new chief executive [of] Tower New Zealand will have a key leadership role in ensuring these objectives are met."

The search for someone to fill the new role, which will almost certainly be Auckland-based, is expected to take several months.

It means two chief executive roles are open in the New Zealand insurance and funds management industry, as AMP has been looking for a replacement for Ross Kent, who left to join Alliance Capital.

AMP's head of public affairs, Jane Anderson, said it had an international search under way and knew it could take time to get the right person.

- NZPA