MIDDAY UPDATE: Tower posts first-half loss on increased quake costs, underlying earnings rise in line with guidance

Tue, 26 May 2015

May 26 (BusinessDesk) - Tower, the general insurer, reported a loss in the first half as the cost of earthquake claims from the Canterbury earthquakes rose, exceeding its reinsurance cap for the February 2011 event, even as underlying earnings rose in line with expectations. The Auckland-based company reported a net loss of $4.9 million in the six months ended March 31, compared to a profit of $13.1 million a year earlier, it said in a statement. Tower increased provisioning for costs associated with the Canterbury quakes by $22.6 million, s...

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