Allianz Australia selected as preferred purchaser of Territory Insurance Office

Allianz Australia selected as preferred purchaser of Territory Insurance Office

Sydney, 24 November 2014

Allianz Australia has entered into an agreement with the Government of the Northern Territory to purchase the general insurance business of the Territory Insurance Office (TIO) and enter into a 10-year agreement to manage the Government Motor Accidents Compensation scheme.

Subject to the passage of the relevant legislation through the Parliament of the Northern Territory and Australian Competition and Consumer Commission approval, TIO’s general insurance business will transfer to Allianz’s ownership and Allianz will start servicing the Government Motor Accidents Compensation scheme on 2 January 2015.

Niran Peiris, Managing Director of Allianz Australia, said: “Allianz is honoured to be chosen as the preferred bidder of the Territory Insurance Office, a Territory icon. Allianz was attracted to TIO because we see northern Australia, particularly, the Northern Territory as the region that will play a major role in Australia’s growth and development in the decades ahead.”

Allianz Australia had gross written premiums of $3.9 billion in 2013. TIO is the clear market leader in general insurance in the Northern Territory with gross written premiums of around $130 million.

“Allianz is Australia’s fourth largest insurance company, but our presence in the Northern Territory is well below that of other States. Thus, TIO was a perfect ‘fit’ for Allianz in a business sense,” Mr Peiris said.

Under the agreement, TIO’s brand will continue and the cover provided by TIO’s property insurance products, in particular, home policies, will continue to include cover for flood, cyclone and storm surge.

Mr Peiris said: “The Territory Government was seeking a new owner that could bring an exceptional level of insurance expertise and financial strength to ensure that TIO had a long-term sustainable future. Allianz well meets this objective as one of Australia’s largest insurers and as a part of the global Allianz Group, the world’s largest general insurer.”

Concluding, Mr Peiris said: “Allianz is honoured to have been entrusted with the future of such an iconic Territory organisation and we look forward to ensuring that TIO remains a much loved part of the Territory community in the future.”

About Allianz Australia

General Insurance Company of the Year 2014, 2013, 2012, 2011, 2009*
Best General Insurance Company of the Year 2014, 2012, 2010, 2007, 2006**

Allianz Australia delivers a wide range of personal, commercial and corporate insurance products and services to more than 2.5 million policyholders. Over 50% of Australia’s top 200 BRW-listed companies have some form of insurance cover with the group and the group provides workers compensation services to around one-fifth of Australian employees.

*Australia & New Zealand Insurance Industry Awards
**Australian Banking and Finance Insurance Awards