TOWER Ltd has sold its Solomon Islands (SI) business to Trans Assurance Ltd for S$17 million (about K7.2 million) as it tightens its risk appetite, according to its chief executive officer Blair Turnbull.
Turnbull said the sale is subject to adjustments for changes to gross written premiums (GWP), exchanges rates and capital requirements, between now and the completion date.
The sale is expected to be completed in 2023.
Turnbull said Tower remained focused on delivering its personal lines and small to medium customer experience in the Pacific, enabling through Tower’s leading digital and data offering, while tightening its risk appetite.
Trans Pacific Assurance chief executive Philip Tolley, said: “We are pleased to have the opportunity to now take ownership of that business and expand it by delivering the service excellence and quality product suite that we have become famous for in Papua New Guinea.
“We also look forward to welcoming the Tower SI staff to our team and hope they are able to continue to serve their customers into the future as they have done so well in the past.”
Turnbull said Tower’s SI business was its smallest Pacific operation.
“In the financial year to 30 September 2022, Tower’s Solomon Islands business generated GWP of NZ$2.9 million (about K6.3 million) and net profit after tax of NZ$1 million (about K218,422).” As at last Sept 30, it had net assets of NZ$2.6 million (K5.6 million).
“In delivering our strategy, we concluded that this sale to Trans Pacific would enable us to better streamline our operations and complete our Pacific digital transformation,” Turnbull said.
“The sale provides good value for Solomon Islands staff, customers and Tower shareholders.”
He said Tower was continuing to invest in its Pacific business with the roll out of its My Tower online sales and service platform and the re-branding of its Tonga, American Samoa and Samoa businesses to Tower following its acquisition of minority interests in National Pacific Insurance in 2021.
“Tower’s Suva operations hub now has 200 staff serving both Pacific and New Zealand Customers.”
Trans Pacific is a privately owned general insurance operating in PNG.
Trans Pacific sees the acquisition of Tower’s SI business as being a good fit with its existing operations, due to the geographical proximity between PNG and the SI, and the similar risk profiles.
Trans Pacific will be offering roles to Tower’s four SI’s staff members.
The transaction is subject to conditions, including approval by authorities in New Zealand, SI and PNG and confirmation of coverage from Trans Pacific’s reinsurers.
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