New Zealand’s only locally owned insurer, Fidelity Life, is acquiring the established Lumley Life operation in NZ.

Media sources say the group beat off up to 12 Australian contenders to acquire the group, which produces premiums of about $4 million a year.

Fidelity Life CEO Milton Jennings told Sunrise Exchange News the acquisition could take up to three months because it’s subject to court approval.

He said Fidelity isn’t buying shares in the company, only the 3500 policies that are in the Lumley name, and the court has to be convinced the transfer of those policies is in the interests of the policyholders.

Mr Jennings refused to disclose how much the company spent on the takeover but said it was “a nice feeling to pull one back from the Aussies”.

“When you see so much going one way across the Tasman it was nice to pull one back – even if it is a small acquisition.”

Lumley Life was put on the market more than a year ago after its British parent, Edward Lumley Holdings, decided to sell its Australian and NZ general and life insurance assets.

Wesfarmers secured Lumley’s Australasian general, fire and life businesses and then on-sold the life business to South African insurer Prefsure Life. Then Prefsure decided it wanted to concentrate on its Australian business and sought expressions of interest for the NZ life operation.

“The group has had four owners in the past 12 months, so when we get it we plan to hang on to it,” Mr Jennings said. “We’d like to provide policyholders with some security and stability.”