NZX-listed insurer Tower is to pay $5.2 million to acquire TSB's insurance portfolio which it already underwrites.
The move is the latest by Tower to build up its business after previously acquiring Youi New Zealand, Club Marine and ANZ's insurance business.
Tower has provided insurance to TSB customers since 2004. Those 18,000 customers will now move to sit under Tower Direct.
It has also signed a five-year agreement for TSB to continue to refer its customers to Tower for insurance.