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- Release Date: 28/11/13 17:24
- Summary: GENERAL: TWR: Federal Court of Australia approves Portfolio Transfer
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TWR
28/11/2013 15:24
GENERAL
REL: 1524 HRS Tower Limited
GENERAL: TWR: Federal Court of Australia approves Portfolio Transfer
28 November 2013
Market Information
NZX Limited
Level 2, NZX Centre
11 Cable Street
Wellington
NEW ZEALAND
Company Announcements Office
Australian Stock Exchange Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
AUSTRALIA
Federal Court of Australia approves Portfolio Transfer
As signalled at its results announcement earlier this week, TOWER Limited is
pleased to announce that the Federal Court of Australia has today approved
the Portfolio Transfer for the runoff business underwritten by its Australian
branch to Gordian RunOff Limited, a subsidiary of Enstar Group.
TOWER Chief Executive Officer David Hancock said today the successful
completion of the transaction would release approximately NZ$21 million in
capital reserves that had been required by the Australian Prudential
Regulation Authority. This will be repatriated to New Zealand, and
incorporated into TOWER's capital management plan.
"This further underpins TOWER's strong capital position as it moves forward
as a focused general insurer. We have a robust growth strategy in place and
an effective and efficient capital management programme will provide us with
the scope to further invest in our business in the coming years," Mr Hancock
said.
TOWER and Gordian RunOff Limited will now proceed towards the completion of
the transaction, working to the transfer date of 5 December 2013 specified by
the Federal Court of Australia at today's hearing in Sydney.
The transfer will see Gordian RunOff Limited assume the insurance liabilities
and ongoing obligations of the run-off business underwritten by TOWER's
Australian branch. The run-off business underwritten by its Australian branch
was disclosed as a discontinued operation held for sale in TOWER's recently
released financial statements.
The sale amount will be settled in cash on the transfer date.
ENDS
David Hancock
Chief Executive Officer
TOWER Limited
ARBN 088 481 234 Incorporated in New Zealand
For further information, please contact:
Tracey Palmer
Head of Corporate Communications
DDI +64 9 369 2017
End CA:00244454 For:TWR Type:GENERAL Time:2013-11-28 15:24:30
