Royal & SunAlliance catches a fast-moving train

Royal & SunAlliance picked up one of the better kept secrets in the New Zealand financial services industry last week when it announced it had bought Guardian Assurance for $182.5 million.

While the perception of Guardian is an old-fashioned, staid, English-owned life insurance company that still used a tied agency force, the reality is quite different.

Guardian successfully used some innovative management, it had strong financial and investment performance, and it was one of the few firms that could successfully use tied agents.