After a rough couple of years, it seems more companies are looking to the life sector for new business opportunities, but it’s still shaky ground for the established companies and even worse for new entrants.

Media reports say New Zealand life insurer Arrow – which was to be owned by financial advisers – has failed to hit its target of a February 3 deadline for full capitalisation. The group, which wants to become a life and finance company, went to the market late last year looking for about 60 advisers to each contribute $50,000 to meet the group’s capital requirements.

But Arrow has failed to get the advisers quivering with excitement, despite MD Tony Bell’s indication it could return 15% a year after tax.

Mr Bell isn’t discouraged, saying although Arrow missed this time, it won’t be fading from the scene. He says the business idea has been “extremely well received”.

Positive reports into the life industry by groups like Standard & Poor’s have spurred more companies to test the troubled waters of life insurance. Last week Sunrise Exchange News reported that St Andrew’s Australia – which is part owned by the bank of Scotland – became the first Australian company in two years to receive a life insurance licence.