Tower has sold its New Zealand health insurance business for $NZ102 million ($80.9 million) following a strategic review.

The operation has been bought by Australian health insurer Nib Holdings.

Tower launched its review earlier this year amid concerns its share price did not reflect the value of its assets.

MD Rob Flannagan says the group could not achieve the necessary scale or return from Tower Medical Insurance in the immediate future, so decided to sell it.