New Zealand insurer Tower says its ownership structure will continue unchanged following a review, although it is “open to considering any future proposals or opportunities”.

US private equity firm Bain Capital owns a 20% stake in the insurer, bought in March 2018 from Suncorp brand Vero for $NZ53.9 million ($50.2 million).

The board has approved a $NZ45 million ($41.65 million) mandatory share buyback, likely to be implemented next March, and affirmed a forecast net profit of more than $NZ45 million for the year to September.

Tower’s statement today comes after it appointed Goldman Sachs late last year to review its capital structure and explore options.

Chairman Michael Stiassny says the strategic review identified options such as potential quota share arrangements that “could be employed to support future growth if required”. 

No change is planned for now.

“We have determined that the best course of action at this time is to continue executing our current business strategy under the existing ownership structure,” he said.

“The board remains open to considering any future proposals or opportunities.”

Tower shares traded at $NZ1.18 on Monday. In December, when Goldman Sachs was appointed, Tower traded as low as NZ59c after losing $NZ5.1 million ($4.71 million) in the 2023 financial year, when record floods and Cyclone Gabrielle struck the North Island.

Bain paid NZ80c a share after Suncorp’s $NZ236 million ($220 million), or $NZ1.40 a share, takeover bid was rejected by the Commerce Commission.

Canadian insurer Fairfax had also looked at buying the group.