NZ insurer Tower has sold the remainder of its life insurance business, and will now focus solely on general insurance.

“We see opportunities for growth and are very focused on increasing our market share in general insurance, particularly key personal lines,” CEO David Hancock said.

Tower has sold the life business for $NZ36 million ($33.4 million) to Foundation Life, which specialises in buying and managing life portfolios that are no longer actively marketed.

The business includes annuities, unit-linked investments and a small amount of traditional non-participating term insurance. Tower says the life operation had assets of more than $NZ700 million ($650 million) at March 31.

“Tower Life has performed well and delivered solid results and we expect the business to flourish under new ownership,” Mr Hancock said.

He says Tower received numerous approaches to buy the business, despite it saying in January it would keep it.

“Foundation Life came to us with a proposition that recognised appropriate value for shareholders.”