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Sovereign Wealth Funds

NZ Super to take 41% stake in local insurer Fidelity Life

The NZ$36 billion ($24.7 billion) New Zealand Superannuation Fund, Auckland, will invest a minimum NZ$100 million, pending approvals, in Fidelity Life, New Zealand's largest locally owned life insurance company.

The sovereign wealth fund said in a news release it will look to take a 41.1% "cornerstone stake" in the Auckland-based insurer, which serves more than 100,000 customers in the country of roughly 4.7 million people.

The release said NZ$75 million of NZ Super's investment will be for newly issued shares, at NZ$115 per share, while a minimum of NZ$25 million will be invested in existing shares. "Eligible minority shareholders" will have the opportunity to sell some or all of their shares to the fund for NZ$130 per share, the news release said.

Fidelity Life's CEO Nadine Tereora said in the release that the injection of capital "will enable us to build digital capability to support innovation, productivity and improved support for customers, advisers and our partners."

A spokeswoman for NZ Super declined to give further details.

Ms. Tereora couldn't immediately be reached for comment.