Tower to acquire ANZ legacy portfolio

Tower Limited
Level 14, 45 Queen Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand


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22 February 2021


Tower to acquire ANZ legacy portfolio

Kiwi insurer Tower (NZX/ASX: TWR) 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.

“We have a clear strategy to grow our business and this agreement continues to solidify our position in the
market as a strong and innovative local insurer that is here for our customers,” said Turnbull.

“Our Partnership with ANZ has been a positive one over many years. As we look forward, we are excited to
welcome these customers to Tower direct product range and to continue providing a leading customer
experience,” said Turnbull.

Tower Limited
Level 14, 45 Queen Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
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.

ENDS

This announcement has been authorised by the Chief Executive Officer




TOWER
Blair Turnbull
Chief Executive Officer
Tower Limited
ARBN 645 941 028 Incorporated in New Zealand




For media enquiries, please contact in the first instance:
Nicholas Meseldzija
Head of Corporate Affairs and Reputation
Tower Limited
Mobile: +64 21 531 869
Email: nicholas.meseldzija@tower.co.nz