Tower has revised its underlying net profit after tax (NPat) guidance for the 2025 financial year, now expecting it to be in the range of $60 million to $70m.
This is an increase from the previous range of $50m to $60m.
The company attributed the upward revision to strong business performance in the first quarter of the financial year and positive early indications from January's performance.
Tower said it has recorded one large event, the Dunedin flooding event in October, with an estimated cost of $3m, and it assumes full use of the $50m large events allowance.
Tower also revised its guidance for gross written premiums (GWP) to a range of 7% to 12%, down from 10% to 15%.
This was because of a reduction in average premiums, which the company said was a result of higher-than-expected proportions of lower-risk new house insurance and motor policies.
However, it improved its guidance on the combined operating ratio (COR) to 84% to 86%, from 87% to 89%.
Tower will provide further details on its performance at its annual shareholder meeting on February 11.
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