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TOWER LIMITED Capital/Financing Update 2014

Aug 24, 2014

65971_rns_2014-08-24_06dbdb11-31dd-4660-84f0-ec29e256f245.pdf

Capital/Financing Update

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25 August 2014

Market Information Company Announcements Office NZX Limited Australian Securities Exchange Limited Level 2, NZX Centre Exchange Centre 11 Cable Street Level 6, 20 Bridge Street Wellington Sydney NSW 2000 New Zealand Australia

TOWER confirms unconditional sale of residual life business

TOWER Limited (NZE/ASX: TWR) is pleased to confirm that all conditions for the sale of its residual life insurance business to Foundation Life (NZ) Holdings Limited (Foundation Life) for $36 million have been satisfied. The sale was announced on 1 July 2014.

TOWER Chief Executive Officer David Hancock today confirmed that arrangements are underway for completing the transaction. Settlement is expected to take place on 29 August 2014.

“TOWER is committed to delivering attractive shareholder returns by growing a general insurance business that is a leading light in New Zealand and the Pacific. We see opportunities for growth and are very focused on increasing our market share in general insurance, particularly in key personal lines.

"TOWER Life (N.Z.) Limited has performed well and delivered solid results, and we expect the business to continue to flourish under new ownership”, said Mr Hancock.

Mr Hancock added that the management of risk and capital remains a key element of TOWER’s strategy to grow shareholder returns. TOWER will provide a capital update to the market when it releases its full year results in November 2014.

ENDS