Northern Territory Insurer Sold
The Territory Insurance Office (TIO) will have new ownership but will remain a stand-alone brand in a deal worth $424 million.
Chief Minister Adam Giles said under the new arrangements, Allianz will take ownership of TIO insurance, while the banking services will transition to People’s Choice Credit Union.
“The Government had the option of selling the insurance, banking and Motor Accidents Compensation arms of the business with an estimated total value of $609 million. However the Government has decided that selling the MAC scheme is not in the interests of Territorians and it will remain in Government ownership,” Mr Giles said.
Under the new arrangements Allianz will:
• Preserve and promote TIO’s brand throughout the Northern Territory in the long term;
• Continue offering products featuring flood, storm surge and cyclone cover;
• Maintain current TIO community sponsorship;
• Contribute an additional $200,000p.a for two years to the TIO Territory Day
• Support the NT government in its new $50 million flood mitigation activities;
• Maintain the existing branches and headquarters in order to ensure a seamless
experience for TIO customers and staff;
• Enable bank customers to continue to access their services in TIO branches whilst
they transition to their new bank arrangements; and
• Retain all TIO
Niran Peiris, Managing Director of Allianz Australia, said: “Allianz is honoured to be chosen as the preferred bidder of the Territory Insurance Office, a Territory icon. Allianz was attracted to TIO because we see northern Australia, particularly, the Northern Territory as the region that will play a major role in Australia’s growth and development in the decades ahead.”
Allianz Australia had gross written premiums of $3.9 billion in 2013. TIO is the clear market leader in general insurance in the Northern Territory with gross written premiums of around $130 million.
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