The Reserve Bank of New Zealand has approved TOWER Insurance Ltd.'s pending purchase of Youi NZ Pty Ltd.'s insurance portfolio.

Tower Ltd. announced the portfolio transfer agreement in September, which will see ownership of Youi NZ's approximately 34,000 in-force policies move to Tower Insurance upon settlement on Dec. 31.

Tower Insurance policy renewals will be offered to customers as existing Youi NZ policies expire.

Youi NZ is a subsidiary of investment holding company Rand Merchant Investment Holdings Ltd.