NZ insurance portfolio sale agreement
Published 24 September 2019
Further to Tower Limited’s New Zealand’s Exchange announcement, Youi NZ PTY Limited has agreed to transfer its New Zealand insurance portfolio to Tower Insurance, subject to the completion of regulatory and commercial requirements, including Reserve Bank of New Zealand approval.
Until the portfolio transfer is completed, it is business as usual for Youi’s New Zealand customers. Their existing insurance cover remains valid and any claims will be resolved in the usual way.
Under the deal, Youi will transition its New Zealand insurance portfolio to Tower so when it is time for policy renewal, customers will automatically have their insurance cover renewed by Tower. Customers will be given plenty of notice before this happens, with Tower contacting customers individually.
After nearly five years Youi has decided to step back from the highly consolidated New Zealand market.
Youi CEO Hugo Schreuder acknowledged everyone who had supported the company’s efforts.
“I would like to thank all of those people – customers, employees and business partners – who supported our efforts to establish a challenger brand in New Zealand,” Mr Schreuder said.
“We’re proud of what we’ve achieved in New Zealand over the last five years but there will be more growth opportunities for the portfolio under Tower’s ownership. Tower is another challenger brand that is also trying to offer something different for New Zealand customers.”
“We’re pleased to confirm that we’ll be maintaining our Auckland call centre to help look after customers in Australia.”
The portfolio transfer is expected to be finalised in the in the fourth quarter of the 2019 calendar year.