Tower reports annual loss due to weather events

Tower Limited has reported its full year results for the year ending September 30, 2023.

The insurer experienced improved revenue growth and expense control, but profits were impacted by catastrophic weather events.

Gross written premium increased by 17% compared to the previous year, and customer growth reached 4%.

The claims ratio for business as usual increased to 55.5% from 48.9% in the previous year.

The management expense ratio improved to 32.2% from 36% in the previous year.

Large event costs were $55.6m compared to $19m in the previous year.

The underlying profit including large events costs was $7.6m compared to $27.3m in the previous year.

The reported loss was $1.2m compared to a profit of $18.9m in the previous year.

Tower will not pay a full year dividend for FY23.

Tower's CEO, Blair Turnbull, stated that the company has faced significant challenges but has shown resilience and strategic delivery.

The company's FY24 guidance includes an expected underlying NPAT between $22m and $27m, GWP growth between 10% and 15%, and an improved MER between 30% and 32%.

Tower is forecasting a