UPDATED Tower sells medical insurance unit to nib for $102M, says profit will beat estimates

Thu, 01 Nov 2012

(Adds comment from nib head Fitzgibbon starting in seventh paragraph) Nov. 2 (BusinessDesk) - Tower, the insurance and wealth management company, agreed to sell Tower Medical Insurance to ASX-listed nib holdings for about $102 million and plans to return the capital to shareholders. The shares jumped 3.1 percent. The decision to sell Tower Medical, which has a market share of about 13 percent, came after Tower reviewed all of its insurance businesses this year and concluded it wouldn’t achieve "the necessary scale of return in this business i...

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