New Zealand Superannuation Fund (NZ Super Fund) has agreed to acquire a 41.1% stake in life insurer Fidelity Life for NZD100m ($69m).

Fidelity Life is privately held by more than 150 shareholders. The proposed investment would be made up of NZD75m in new shares issued to the NZ Super Fund at NZD115 per share. The fund would also buy NZD25m of existing shares.

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Fidelity Life chair Brian Blake said securing the NZ Super Fund as a major shareholder will provide new capital which will enable the company to accelerate its growth strategy.

“Fidelity Life has experienced strong growth in recent years and this has outpaced our ability to fund the future rate of growth we’re aiming for without additional capital.”

The deal is subject to a number of conditions, some of which require action from shareholders.

“If our shareholders provide the necessary approval for the investment to proceed, the new capital will allow us to deliver on our future strategy providing strong, sustainable returns and growth over the long term,” Blake noted.

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Commenting on the deal, NZ Super Fund chief investment officer Matt Whineray said: “This is a rare opportunity for the Fund to take a significant direct stake in a New Zealand life insurance company. The additional capital we are providing will support Fidelity’s long-term growth plans.”

Fidelity Life CEO Nadine Tereora said: “This is an exciting future step for Fidelity Life. We have come a long way since we were founded in 1973. We have more than 100,000 customers and our products are distributed via a network of 2,700 independent financial advisers and through strategic alliances. This new capital will enable us to build digital capability to support innovation, productivity and improved support for customers, advisers and our partners.”