Tower to sell Vanuatu Business

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
Classification: Sensitive



16 January 2024

Tower to sell Vanuatu Business
Tower announces the conditional sale of its Vanuatu subsidiary to Capital Insurance Group of Papua New
Guinea. The sale proceeds are expected to be around $1.6m, net of costs of sale, subject to adjustment for
changes in the subsidiary’s net assets at the completion date. The sale is expected to complete in the first half
of 2024.
Capital Insurance Group is a privately owned general insurer. It sees the acquisition of Tower’s Vanuatu
subsidiary as being a good fit with its existing operations in Vanuatu. The transaction is conditional on approval
by authorities in Vanuatu and Papua New Guinea.
In the financial year to 30 September 2023 (FY23), Tower’s Vanuatu subsidiary generated NZD $6.8m of GWP
and a net loss after tax of NZD $5.3m, including the impact of large events. As at 30 September 2023, it had net
assets of NZD $2.2m.
Tower communicated its intention to sell its Vanuatu subsidiary in November 2023. An impairment charge for
the difference between the expected sale price and the value of the subsidiary's net assets was recognised in
FY23, therefore the sale is not expected to have a significant impact in the 2024 financial year.
Tower Chief Executive Blair Turnbull says this sale reinforces recent actions Tower has taken to streamline its
Pacific operations while further developing its digital and operational proposition in its key Pacific markets.
In FY23, Tower completed the sale of its Papua New Guinea business and announced the conditional sale of
its Solomon Islands business to Trans Pacific Assurance Limited. This sale is now unconditional and is intended
to be completed at the end of this month.
Mr Turnbull says Tower’s new operational hub in Suva, which employs around 250 staff who help support
customers in New Zealand, Fiji and the wider Pacific, demonstrates the business’ commitment and continued
investment in the region.
“Our remaining Pacific businesses generated $43m in GWP in FY23 and have the infrastructure required to
successfully operate and upgrade My Tower. These capabilities are key to our strategy to deliver a leading
personal lines and SME customer experience in the Pacific.”
ENDS

This announcement has been authorised by Tower Chief Executive, Blair Turnbull.

For media enquiries, please contact in the first instance:
Emily Davies
Head of Corporate Affairs and Sustainability
+64 21 815 149
emily.davies@tower.co.nz