Tower shares fall to 2-month low as licensing requirements may weigh on capital returns

Wed, 07 Aug 2013

By Paul McBeth Aug 7 (BusinessDesk) - Shares in Tower fell to a two-month low after the insurer gave more guidance on its licensing requirements, raising concerns it may have to hold more cash on its balance sheet. The stock fell 3.2 percent to $1.79 after the Auckland-based company yesterday said it needs a minimum solvency margin of $80 million above minimum solvency capital from Aug. 16 to meet the terms of its insurance licence under new prudential supervision laws. Chief executive David Hancock said the insurer has the funds availabl...

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