The Northern Territory Government will sell the Territory Insurance Office’s (TIO) insurance operations to Allianz Australia.

Northern Territory Chief Minister Adam Giles this morning announced that TIO will be split up and sold for $424 million, with Allianz buying the insurance operations and the banking arm sold to People’s Choice Credit Union.

The Motor Accidents Compensation (MAC) scheme will continue to be owned by the Government, but will be managed by Allianz.

Allianz MD Niran Peiris says the TIO brand will be retained and the insurer will continue to offer flood, storm surge and cyclone cover.

Existing branches, the headquarters and all TIO insurance staff will also be retained.

There is fierce resistance to the sale in the Territory, with public meetings held and a petition circulating, but the Government has the numbers to push it through.

The TIO is the last government-owned general insurer in Australia.

It made a $40.36 million profit and a 10% return on equity last financial year and reported gross written premium of $128.69 million.

More details in our regular bulletin this afternoon.