TOWER COMPLETES PREFSURE BUY

Hello everyone,

TOWER today completed the purchase of PrefSure following the receipt of regulatory approval from the Foreign Investment Review Board (FIRB) and the Australian Prudential and Regulation Authority (APRA).

We are well advanced on a smooth and seamless integration program and for a 3 April first working day of the merged TOWER business.

David Callander, formerly head of the TOWER Australian Life business is now Chief Executive Officer Retail Life; Geoff Black formerly the Managing Director of PrefSure is Chief Executive Officer Alliances and Group Risk; and Grahame Evans remains as Chief Executive Officer Investments. Management structures reporting into these roles have also been finalised ahead of 3 April.

Jordan Hawke the TOWER Head of Sales, has been appointed as Head of Retail Sales and Product for the merged business.

The integration philosophy is to build on the combined strengths of TOWER and PrefSure, and to maintain market momentum in those businesses while drawing upon the benefit of certain cost synergies.

The Group Risk business lines immediately merge with one product set being offered. This will be the PrefSure product.

The Retail business will operate under the TOWER brand but both TOWER and PrefSure product sets will remain open. Both TOWER and PrefSure retail product sets are now undergoing upgrades to ensure they remain highly competitive.

It is our aim to maintain business as usual and to retain momentum while keeping a strong focus on service leadership and making sure our products are market leaders.

We intend to make the merged company a market leader in Life Insurance in Australia. This is an attractive market with good underlying growth levels and with more opportunity to come from addressing the large levels of underinsurance that exist in Australia.

According to the latest Plan for Life figures to 31 Dec 2005 the merged company TOWER Australia will be:

• The fastest growing  Life insurer among the top 10 at a  63.6 % year on year increase  in new annual premiums and 33.5% year on year increase in in-force premiums    
• The third largest company based on in force premiums of $583m and 11.8% of total market
• The second highest in overall new business sales with new annual premiums market share of 14.9%. 

The merged TOWER will focus on being a leader in its competitive market areas; delivering high quality customer/adviser service and delivering value to TOWER shareholders.

We look forward to working with you all and thank you for your continued support.

Jim Minto 
Group Managing Director 
TOWER Limited
80 Alfred Street Milsons Point NSW 2061 Australia
22 Fanshawe Street Auckland NZ
Phone: 
Australia + 61 2 9448 9217
NZ + 64 9 369 2274
Fax:
Australia + 61 2 9929 5792
NZ +64 9 369 2129
E-mail: jim.minto@towerlimited.com
Website:  www.towerlimited.com

Disclaimer
This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.

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TOWER Australia Ltd
A.B.N. 70 050 109 450
AFSL Number 237848