NT GOVT, ALLIANZ, PEOPLES CHOICE CREDIT UNION TO SHARE TIO OWNERSHIP: The Northern Territory Government has today announced the sale of TIO, Australia’s last publicly-owned insurer, despite widespread opposition. The $424 million ownership deal will see Allianz take over the insurance arm of the business, while People’s Choice Credit Union will acquire all banking services, including TIO Bank’s loan portfolio worth approximately $570 million and deposits worth $124 million. Ultimate ownership of the Motor Accidents Compensation (MAC) scheme will remain with the Government, though fund management will transition to Allianz. “TIO will continue in its current form but now has the backing of the largest insurer in the world,” said Chief Minister Adam Giles. “All along, the government has said that any new owner must look after the respected TIO brand, maintain the services Territorians rely on, and look after TIO’s staff,” Mr Giles said. “Under this new model nothing changes for customers. The TIO name remains, branches stay open, policies stay the same, flood and storm surge cover continues and staff keep their jobs. “I want to assure Territorians that this is not a decision we have taken lightly but the Government believes it is the best outcome for taxpayers because it reduces their exposure to risk and frees up $424 million in funds for the development of Northern Australia. “The funds raised through this change of ownership now enable us to invest in the infrastructure we need to unlock the full potential of the Northern Territory, creating jobs and opportunity for our children. They also allow us to do important community flood mitigation work.” $215 million in proceeds will go into a long term Infrastructure Development Fund, with the remainder to be made available for more immediate community infrastructure projects. These include including $50 million for flood mitigation work in Rapid Creek, Katherine and Darwin’s Rural Area. $25 million would be set aside for works in Rapid Creek and the Darwin Rural Area, while another $25 million would be allocated to Katherine. The $25 million for Katherine includes $7.6 million to move Katherine’s Ambulance Centre out of the flood zone. “We want to preserve and promote TIO’s brand and maintain the coverage Territorians rely on,” said Allianz Australia Managing Director Niran Peiris. “We are here to grow TIO, not change it.”
Posted on: Mon, 24 Nov 2014 07:15:52 +0000
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