Life insurer Tower NZ has announced it is seeking to raise $NZ81.3 million ($67 million) from shareholders through a rights issue.

The extra capital will give the insurer the capacity to spend up to $NZ200 million ($164 million) on acquiring other health, life and general insurance firms or investment businesses.

Group MD Rob Flannagan says the capital raising is consistent with the company’s strategy for business growth.

“The additional capital will provide support for Tower’s organic growth strategies and enhance the group’s financial flexibility to take advantage of strategic opportunities that may arise,” he said.

Mr Flannagan says it will also help the company continue to demonstrate leadership in insurance and financial services throughout NZ and the Pacific Islands.