TWR - Tower Insurance

[Shareguy]

Dai-ichi Life Life Group's New Zealand subsidiary, Partners Group Holdings, has agreed to acquire 100% of Fidelity Life Assurance Company for NZ$630m

Fidelity Life reported insurance revenue of NZ$459m and pre-tax profit of NZ$24m for the year ended March 2025, while its net assets stood at NZ$221m.

Tower Reported profit YES 2025 $83.7m (up from $74.3m in FY24)
On Gross written premium (GWP): $600m, up 2%. Net assets of $350m

[Ferg]

That's a huge multiple for Fidelity.  There must be more to it.

[Southern Lad]

I suspect the life insurance industry is very different to general insurance. 

After a quick look, the accounting standards for life insurance require the present value of premiums over the life of the contract to be booked as an asset and the present value of the expected payments under the policy to be booked as a liability, and the expected profit to be spread over the term of the policy.  The basis on which an acquirer would value the expected cash flows may produce a number that is quite different to the shareholders funds determined under the applicable accounting standards.