Tower has announced the conditional sale of its Solomon Islands business to Trans Pacific Assurance in a deal worth around SB$17 million ($3.3 million), subject to adjustments for changes to gross written premiums (GWP), exchange rates, and capital requirements between now and the completion date. The sale is expected to close later this year.
Tower’s Solomon Islands business represents its smallest across Pacific operations. During the fiscal year ending Sept. 30, 2022, the business generated a GWP of $2.9 million and net profit after tax of $0.1 million. As of the same fiscal period, it had net assets of $2.6 million.
In a news release, Tower chief executive Blair Turnbull said that the insurer remains focused on delivering its personal lines and SME experiences in the Pacific through its digital and data offerings while tightening its risk appetite.
“In delivering our strategy, we concluded that this sale to Trans Pacific would enable us to better streamline our operations and complete our Pacific digital transformation. The sale provides good value for Solomon Islands staff, customers, and Tower shareholders,” Turnbull said.
Despite the sale, Tower has maintained its commitment to the region with continued investments in its Pacific business. Recently, it rolled out its My Tower online sales and service platform and rebranded its Tonga, American Samoa, and Samoa businesses to Tower following the acquisition of minority interests in National Pacific Insurance in 2021. In addition, Tower’s Suva operations hug bow has 200 staff serving both Pacific and New Zealand customers.
In line with the acquisition, Trans Pacific will be offering roles to Tower’s four Solomon Islands staff members.
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