New Zealand-based insurer, Tower Limited, has confirmed the sale of its residual life insurance business to Foundation Life Holdings Limited.
In a statement to the Australia Securities Exchange (ASX) this morning, Tower chief executive, David Hancock, confirmed that all conditions for the $36 million deal had been satisfied, with settlement expected to take place on 29 August 2014.
"Tower is committed to delivering attractive shareholder returns by growing a general insurance business that is a leading light in New Zealand and the Pacific," he said.
"We see opportunities for growth and are very focused on increasing our market share in general insurance, particularly in key personal lines.
"Tower Life Limited has performed well and delivered solid results, and we expect the business to continue to flourish under new ownership."
Hancock added that the management of risk and capital remained a key element of the company's strategy to grow shareholder returns.
