It has formed a strategic partnership with the Rothbury Group which see it take over Rothbury’s life insurance and mortgage businesses. Rothbury gets Lifetime’s general insurance business and it is also is taking a cornerstone shareholding in LIfetime.
Rothbury, which is the fourth largest general broker in New Zealand and part of the ASX-listed Steadfast Group, has bought a 19.5% stake in the business for $8 million.
Lifetime’s mortgage business will get another eight brokers, bringing the total to 19, and it will generate around $400 million in loans a year.
Lifetime chief executive Mike Jones says that he sees “real potential for growth in the mortgage business.”
Currently it doesn’t have mortgages in all the Lifetime offices, but that is likely to change.
Rothbury’s also has a tie up with the Bayleys real estate group.
Jones says the transaction is part of a 36-month growth plan. Over the past two years the business has been improving its systems and processes and next year it will look to start growing again.
Lifetime runs a hybrid business model where advisers can acquire shares in the business. Currently it has 63 shareholders and two-thirds of those are advisers.
Jones says the model with mortgage brokers is more of a partnership at the moment and it is working on reviewing the model it uses in this space.
Jones says Lifetime has been “really gearing up” for the new financial advisers regulation and has been working on its systems and compliance.
“Without a doubt we will be a FAF (Financial Adviser Firm),” he says. “It’s fait au compli.”
The group has also been working on a new CRM. Currently it uses Xpaln via Sovereign and AMP. It will stay with IRESS, who run Xplan, but it is developing a customised front end for the CRM.
