Tower Australia Group Ltd
(ASX:TAL) has announced a deal with Virgin Money to deliver straight-talking life insurance in Australia from early next year.
The companies report that 95 per cent of Australian families don’t have adequate insurance cover.
The new partnership is geared to provide wealth protection through life insurance in a simple and easy way.
Tower says it doesn’t expect the transaction will have much impact on underlying profit and earnings per share in fiscal 2011.
Adding, that the recent rights issue has provided Tower with capital flexibility to fund growth through opportunities, such as the deal with the powerful Virgin brand.
Virgin Money says the alliance represents a broadening of its current insurance portfolio as well as expanding into Australia through financial services.
Tower Australia Group reported a $28.36 million profit for the six months to 31 March 2010.
