New Zealand financial services provider Turners Automotive Group (ASX/NZX: TRA) has partnered with Heartland Bank (ASX/NZX; HGH), securing a new distribution network which the auto insurers expects to generate an additional NZ $2m in revenue.
Via the partnership, Heartland Bank will commence selling Turners’ Autosure products via their motor vehicle financing business, MARAC.
“This is a major opportunity for Autosure, that builds on the progress made over recent years. We look forward to working closer with MARAC to create a comprehensive product offering and a seamless experience for their customers,” said Turners CEO, Todd Hunter.
Within New Zealand, MARAC has a network of more than 400 motor vehicle dealers which will commence offering Autosure from mid-December onwards.
Beyond their brick-and-mortar car yards in New Zealand where Turners is the nation’s largest buyer and seller of motor vehicles, the Company has been conducting strategic reviews into their business.
This has seen reviews of non-core business units Oxford Finance and EC Credit Control, as well as a strategic investment in Australian Fintech – Collaborate (ASX: CL8), which is disrupting the traditional motor vehicle market by integrating sharing economy initiatives.
Despite reporting a 3% NPAT decline in FY19, Turners Automotive Group remains one of the highest gross dividend yielding shares in New Zealand at 9.9%.