Tower to acquire TSB Bank's insurance portfolio

Tower Ltd. has agreed to acquire and assume TSB Bank Ltd.'s rights and obligations related to a TSB-branded insurance portfolio for NZ$5.2 million.

The acquisition, expected to complete July 1, is unconditional and does not require regulatory approvals to proceed.

The Auckland, New Zealand-based insurer has provided insurance to TSB Bank's customers under the insurance portfolio since 2004. Following the transaction, the portfolio will become part of the Tower Direct business, with Tower directly insuring customers under Tower-branded policies.

Tower and TSB Bank also entered into a five-year referral agreement for TSB Bank's new insurance customers.

As of May 30, US$1 was equivalent to NZ$1.52.