TOWER LIMITED — Capital/Financing Update 2013

Nov 27, 2013

==> picture [93 x 46] intentionally omitted <==

28 November 2013

Market Information Company Announcements Office NZX Limited Australian Stock Exchange Limited Level 2, NZX Centre Exchange Centre 11 Cable Street Level 6, 20 Bridge Street Wellington Sydney NSW 2000 NEW ZEALAND AUSTRALIA

Federal Court of Australia approves Portfolio Transfer

As signalled at its results announcement earlier this week, TOWER Limited is pleased to announce that the Federal Court of Australia has today approved the Portfolio Transfer for the runoff business underwritten by its Australian branch to Gordian RunOff Limited, a subsidiary of Enstar Group.

TOWER Chief Executive Officer David Hancock said today the successful completion of the transaction would release approximately NZ$21 million in capital reserves that had been required by the Australian Prudential Regulation Authority. This will be repatriated to New Zealand, and incorporated into TOWER’s capital management plan.

“This further underpins TOWER’s strong capital position as it moves forward as a focused general insurer. We have a robust growth strategy in place and an effective and efficient capital management programme will provide us with the scope to further invest in our business in the coming years,” Mr Hancock said.

TOWER and Gordian RunOff Limited will now proceed towards the completion of the transaction, working to the transfer date of 5 December 2013 specified by the Federal Court of Australia at today’s hearing in Sydney.

The transfer will see Gordian RunOff Limited assume the insurance liabilities and ongoing obligations of the run-off business underwritten by TOWER’s Australian branch. The run-off business underwritten by its Australian branch was disclosed as a discontinued operation held for sale in TOWER’s recently released financial statements.

The sale amount will be settled in cash on the transfer date.

ENDS

David Hancock Chief Executive Officer TOWER Limited

ARBN 088 481 234 Incorporated in New Zealand

For further information, please contact: Tracey Palmer Head of Corporate Communications DDI +64 9 369 2017