Outsurance sells New Zealand insurance business
The sale price range is between NZ$10 million (R94 million) and NZ$13m (R122 million).
Outsurance will sell its New Zealand insurance business, Youi New Zealand, to Tower Insurance, that country's third largest general insurer.
“The sale provides an opportunity for Youi to unlock value on favourable terms and, going forward, will allow the Youi group to focus on its Australian business where the greater scale and diversity of the market offers more growth opportunities for a challenger brand like Youi.”
Outsurance launched Youi Australia, a short-term insurer, in 2008.
The sale price range is between NZ$10 million (R94 million) and NZ$13m (R122 million). More importantly, the company said that the sale will release capital of more than R400 million allocated to the New Zealand business.
The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter 2019.