Investors punish Tower stock as ongoing quake exposure erodes dividend prospects

Thu, 22 Sep 2016

By Sophie Boot Sept. 22 (BusinessDesk) - Sept. 21 (BusinessDesk) - Tower's stock gained today after a report the general insurer could be a takeover target but the insurer has shed half its value in the past 12 months on signs prolonged exposure to Canterbury earthquake claims has sapped its ability to pay dividends. The shares have tumbled 52 percent in the past 12 months, the worst performance on the NZX 50 Index. Some $36 million of provisions for Canterbury earthquake claims pushed it to a $7 million loss in 2015 and losses continued...

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