Alpha Insurance Limited agreed to acquire TOWER Insurance (PNG) Limited from Tower Limited (NZSE:TWR) for AUD 7.9 million on June 10, 2022. Consideration is subject to settlement adjustments. Following completion of the sale, Alpha Insurance will utilise Tower's brand as it undertakes a rebranding process for up to three months.

Tower will also provide transitional services to Alpha Insurance for up to six months after the completion date. In the financial year to September 30, 2021, Tower Insurance (PNG) Limited net profit after tax was AUD 0.8 million. As at September 30, 2021, it had net assets of AUD 4.23 million.

The transaction is subject to receipt of clearance or authorisation from the Independent Consumer & Competition Commission in Papua New Guinea and any approval necessary under the Insurance Act 1995 (Papua New Guinea). It is also subject to Alpha Insurance obtaining finance to complete the purchase in Australian dollars and Tower obtaining all necessary internal approvals. The sale is expected to occur in FY22.