A New Zealand High Court stoush between ANZ National and Tower Insurance over a $70 million premium book has moved to the NZ Court of Appeal.

The case centres on who owns the relationship with 110,000 clients who took out ANZ-branded insurance which was underwritten by Tower Insurance.

Tower, which was dumped by ANZ in favour of Vero in August 2008, claims it is entitled to contact and renew clients who signed insurance policies via ANZ’s distribution network.

But ANZ says Tower is no longer authorised to leverage off its brand name and its customer base of 1.2 million. The bank is demanding Tower cease communication once a policy expires.

Tower Group MD Rob Flannagan says his company will “continue to renew all policies as they become due and will accept and process claims in the normal course of business”.

The case was heard in the New Zealand High Court last year, which found Tower owned the relationship with ANZ’s customers and was therefore permitted to renew policies as part of its continuing obligations.

But ANZ says the High Court decision undermines a contractual clause that barred Tower from contacting any ANZ customers for two years, with the exception of current policyholders.

Sydney-based insurance lawyer Mark Radford says most contracts involving a bank using an underwriting partner usually cover eventualities like contract cancellations.

“Typically, the bank acts as an agent on Tower’s behalf. While it may be branded as another product, Tower would have been stated on contracts as the insurer.”