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Tower acquires legacy ANZ policies

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New Zealand’s Tower has acquired 23,000 legacy insurance policies it underwrote during the two decades to 2009, ending payments of commission to ANZ.

Tower provided insurance for ANZ customers between 1990 and 2009 and continues to cover more than 23,000 people under those policies.

The insurer agreed to pay $NZ14 million ($12.99 million) in cash to ANZ to acquire rights relating to servicing the portfolio, which contributed $40 million ($37.12 million) in premiums to Tower last year.

The customers will now be insured under a Tower branded policy and migrated to its cloud-based, digital platform, offering a more expansive and up to date product range.

Tower CEO Blair Turnbull says the deal delivers operational scale efficiencies.

“We adopted this successful acquisition strategy with Youi NZ, Club Marine and now ANZ,” Mr Turnbull said.

"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.”