Tower completes sale of PNG subsidiary

Oksana Patron

1 November 2022

ASX-listed New Zealand-based insurance company, Tower has announced it has completed the sale of its Papua New Guinea (PNG) subsidiary, Tower Insurance (PNG) Limited, to PNG based insurer, Alpha Insurance Limited for NZD11 million rather than the AUD7.9 million, as originally agreed.

The move would allow Tower to invest further in Pacific operation in Tonga, Samoa, American Samoa, the Cook Islands, the Solomon Islands, Fiji and Vanuatu.

Following the sale, Tower Insurance Limited would remain in place and customers did not need to do anything and all Tower Insurance Limited’s employees would be retained on the same or improved terms and conditions, the firm said in the announcement made to the Australian Securities Exchange (ASX).

“We have enjoyed our connection to Papua New Guinea’s people and culture over many years. I would like to extend our sincere thanks to our Papua New Guinea and customers for their support and loyalty,” Turnbull said.

“The seven Pacific markets we continue to operate in offer us positive opportunities to progress our digital strategy in terms of existing technology development, digital payments capabilities, and the balanced mix of commercial and personal lines customers.”