Tower has successfully renewed its reinsurance program for the 2024 financial year.
Despite a challenging reinsurance market, the company has secured comprehensive coverage at competitive rates for various types of insurance across New Zealand and the Pacific.
Tower's reinsurance strategy aims to protect against volatility and support growth while maintaining solvency.
The company has received ongoing support from large reinsurers and has impressed with its risk management and customer relationships.
Tower has adjusted its catastrophe upper limit to $750m and purchased cover for two catastrophe losses up to that amount, with an additional cover for a third event up to $75m.
The reinsurance excess for the first two events in FY24 has increased to $16.9m, and an excess of $20m applies for a third event.
Tower estimates it will pay 13.9% of total income for reinsurance cover in FY24, compared to 15.7% in FY23.
The announcement reflects adjustments made to risk-based pricing and changes in the business mix.
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