Tower remains resilient to weather events, strong Q1 result

Kiwi insurer Tower Limited (NZX/ASX: TWR) has reported a strong first quarter result for the 2023 financial year, despite the Auckland & Upper North Island Weather Event, and Cyclone Gabrielle.

Tower CEO Blair Turnbull says the company has remained resilient, and is focused on supporting customers and communities throughout the recovery.

For the quarter, Tower recorded $123 million gross written premium (GWP), representing a 12.5% growth on the same period last year.

The insurer is now actively managing external factors that put pressure on claims costs, and plans to expand its natural hazards model to include landslips and coastal hazards in FY23.

Tower has estimated the ultimate cost of the Auckland and Upper North Island weather event to be within the range of $95m to $125m, and expects Cyclone Gabrielle is likely to also trigger Tower’s reinsurance.

Tower’s full year underlying NPAT guidance is between $18m and $23m and forecast dividends are 5 cents per share for the full year.