Allianz Australia has signed an agreement with the Northern Territory Government to acquire the general insurance business of the Territory Insurance Office (TIO).
According to Northern Territory chief minister Adam Giles, Allianz will take ownership of TIO insurance, while the banking services will transition to People’s Choice Credit Union, in a deal worth $424m.
Giles said: "The Government had the option of selling the insurance, banking and Motor Accidents Compensation arms of the business with an estimated total value of $609m.
As part of the deal, TIO will remain as a stand-alone brand, and will provide property insurance products, including home policies. It will also continue to include cover for flood, cyclone and storm surge.
Allianz will maintain TIO’s community sponsorship programs, such as the TIO Stadium in Darwin, TIO Traeger Park in Alice Springs and the CareFlight TIO Rescue Helicopter.
TIO’s general insurance business will transfer to Allianz’s ownership, subject to the passage of the relevant legislation through the Parliament of the Northern Territory and Australian Competition and Consumer Commission approval.
Allianz has also entered into a 10-year agreement to manage the Government Motor Accidents Compensation scheme, with plans to start servicing the scheme from 2 January 2015.
Allianz Australia had gross written premiums of $3.9bn in 2013, while TIO had gross written premiums of around $130m.