Sharechat Logo

Tower Limited (NZX: TWR) Tower to Acquire ANZ Legacy Portfolio

Monday 22nd February 2021

Text too small?

Kiwi insurer Tower announced it has agreed to pay $14m in cash to ANZ to acquire and assume ANZ’s rights and obligations relating to servicing a portfolio of insurance underwritten by Tower. This transaction enables this portfolio to be brought into the Tower Direct business.

Tower provided insurance for ANZ and National Bank customers between 1990 and 2009 and continues to cover over 23,000 people under those policies. On completion of the acquisition these customers will be insured directly by Tower under a Tower branded policy. These customers have always been insured by Tower under these policies and that is not changing as a result of this acquisition. No steps need to be taken by existing customers.

Blair Turnbull, Tower CEO, says the deal delivers positive value for Tower and its shareholders by ending all future ANZ commission payments on the portfolio. Premiums from the ANZ portfolio contributed $40m in FY20 to Tower’s Gross Written Premium. The agreement also enables the migration of these customers to Tower’s leading cloud-based, digital platform which delivers operational efficiencies for the company and offers customers a more expansive and modern product range.

“We have a tried and true method to migrate customers from legacy platforms and products to our new technology, which improves the customer experience and delivers scale efficiencies. We adopted this successful acquisition strategy with Youi NZ, Club Marine and now ANZ,” said Turnbull.

Turnbull says that the acquisition means these customers will now have access to Tower’s leading digital and data technology that provides simple and rewarding experiences for customers. We will be deepening our relationships with these customers, with increased engagement and access to modern and innovative new products, as well as enabling them to go online to understand and manage all aspects of their insurance.

No regulatory approvals are required to proceed under the agreement and the acquisition is unconditional, with completion expected to take place on 12 March 2021.

Please see the link below for details:

Tower to acquire ANZ legacy portfolio

Source: Tower Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Good Spirits Hospitality Limited (NZX: GSH) Half Year Results to 31 Dec 2020
NZ Automotive Investments Limited (NZX: NZA) FY21 Earnings Guidance
T&G Global Limited (NZX: TGG) 2020 Full Year Results
Vista Group International Limited (NZX: VGL) Vista Group in the Box Seat for the Future of Movies
Private Land and Property Fund (NZX: PLP) Change in Harvest Estimates
Allied Farmers Limited (NZX: ALF) FY21 Half Year Report
New Zealand Rural Land Company Limited (NZX: NZL) Interim Report to 31 December 2020
Seeka Limited (NZX: SEK) Announces its 31 December 2020 Result
Evolve Education Group Limited (NZX: EVO) Announces Results for Year Ended 31 December 2020
Port of Tauranga Limited (NZX: POT) Reports Improved Profits

IRG See IRG research reports