Job cuts loom after Allianz Australia takes over TIO

May 6 2015 by InsuranceAsia News Staff

At least 40 employees of Territory Insurance Office (TIO), a major state-owned insurance and finance institution in Australia, are set to lose their jobs following the takeover of Allianz Australia.

European insurer Allianz issued a statement saying a strategic review found some duplication in back office areas of the business, and that 43 people will be redeployed or be made redundant.

The employees facing the axe, however, can find refuge in the Northern Territory government, which has pledged to hire them should they be let go by Allianz.

The sale of TIO’s insurance arm to Allianz was approved by the Australian parliament.

Treasurer Dave Tollner was quoted by ABC News as saying that TIO employees are welcome to work with the Territory Government.

Allianz paid AUD230m (US$183m) to acquire TIO’s insurance operations.

TIO’s banking operations, on the other hand, have been sold to People’s Choice Credit Union.

TIO, the last-state owned insurer in Australia, will be split up as part of a US$424m deal between the local government and private companies.