Under the agreement, Tower Insurance will acquire around 34,000 in-force policies from Youi NZ for a purchase price of NZ$13 million, increasing its gross written premiums by 8 per cent. Tower Insurance policies will be offered as Youi NZ policies expire.
Top law firm MinterEllisonRuddWatts advised Youi on the transaction, with Partner and Corporate Division Leader Silvana Schenone leading the firm’s deal team.
“We are delighted to have worked alongside the team at Youi to reach this excellent outcome for both its business interests and New Zealand’s wider insurance sector,” says Silvana Schenone.
“Throughout the negotiation process, we supported our client to reach an agreement that meets its business objectives while also taking into account the interests of a number of different stakeholders and applicable regulatory requirements. We remained focused on the critical aspects of the deal, while applying a commercial and pragmatic lens.”
Russell Redsell, Youi’s Group General Counsel stated: “The team at MinterEllisonRuddWatts was excellent to deal with: they listened to what was important to us and helped us achieving our business objectives. They were responsive, dynamic and technically excellent.”
The law firm’s deal team included partners Richard Wells, Jeremy Muir and Gillian Service, alongside senior associates Igor Drinkovic and Elena Kim advising on all aspects of the transaction.
The acquisition is subject to regulatory approvals by the Reserve Bank of New Zealand and it is likely to complete later this year.