Tower is to merge its New Zealand operations into a single organisation under one chief executive.
In a statement to the stock exchange today, the company said Tower New Zealand Insurance & Operations, run by chief executive Paul Hunt, and Tower New Zealand Investment Businesses, run by chief executive Paul Bevin,will merge.
Group managing director Keith Taylor said Mr Hunt and Mr Bevin have both said they are not interested in the new chief executive role.
Mr Taylor said a more streamlined and cohesive structure for Tower's New Zealand business would strengthen the brand. He said Tower was a strong performer as both a wholesale funds manager and in the insurance market.
"We are committed to both of these businesses and the strategy for Tower New Zealand over the next few years is one of substantial growth and further improvement in its market position. The new chief executive (of) Tower New Zealand will have a key leadership role in ensuring these objectives are met," Mr Taylor said.
The search for someone to fill the new role is expected to take several months.
Last week Tower announced plans to spin off its Australian wealth management business and list it on the Australian stock exchange.
Shares in the company were down 1c at $2.24 in mid-morning trading today.
