Tower to acquire Youi NZ insurance portfolio

Tower announced that Tower Insurance Limited has signed a Portfolio Transfer Agreement for the purchase of Youi NZ’s insurance portfolio, subject to regulatory approvals.

Under this agreement, Tower Insurance will acquire Youi NZ’s approximately 34,000 in-force policies for a total purchase price of NZ$13 million, with Tower policy renewals to be offered as current Youi NZ policies expire.

The purchase price of $13 million represents an 8% increase to Tower’s current NZ GWP.

“The purchase of Youi’s portfolio will assist us to accelerate our growth and we are now firmly positioned as a challenger brand focused on delivering good customer outcomes and value for our shareholders. Together with the successful implementation of the IT simplification programme currently underway, this investment will deliver growth, build scale and leverage the investment in IT.” – Tower CEO, Richard Harding.