Youi exits market

General insurer Youi is withdrawing from New Zealand’s insurance market after a five years in a bid to focus more on the Australian market.

Tower Limited has announced its signing of a Portfolio Transfer Agreement for the purchase of Youi NZ Pty Ltd’s insurance portfolio, subject to regulatory approvals.

Under this agreement, Tower Insurance will acquire Youi NZ’s approximately 34,000 in-force policies for a total purchase price of NZD13 million, with Tower policy renewals to be offered as current Youi NZ policies expire.

The purchase price of USD13 million represents an eight percent increase on Tower’s current NZ GWP.

Tower CEO, Richard Harding, says this acquisition will further accelerate the company’s growth ambitions and drive shareholder value.

“The purchase of Youi’s portfolio will assist us to accelerate our growth and we are now firmly positioned as a challenger brand focused on delivering good customer outcomes and value for our shareholders.