Source: Radio New Zealand
RNZ / Dan Cook
Insurance company Tower’s interim profit has more than halved amid a jump in weather-related claims, a subdued market and pricing pressure.
Key numbers for the six months ended March compared with a year ago:
- Net profit $22.9m v $49.7m
- Gross written premium $301m v $297m
- Underlying profit $36.8m v $61.7m
- Large event costs $18.5m v $3m
- Interim dividend 5 cents per share v 8 cps
The company said the result came on the back of an “exceptionally strong” first half a year ago, which benefited from “unusually benign weather”.
Tower has set aside $45 million for major events for the year, and recorded four in the first half, costing around $18.5m, compared to $3m a year ago.
The Wellington flooding in April would be recorded for the second half of the year, with an estimated cost of $5m.
“Over the 12 months to 31 March, we welcomed 15,000 new customers to Tower, with continued strong growth in house policies despite a subdued economic environment,” Tower chief executive Paul Johnston said.
“Competitive pricing is supporting customer affordability and growth, while our expanded risk-based pricing is strengthening portfolio quality and reducing exposure to weather-related impacts.”
While Tower’s customer base grew by 5 percent from a year ago, gross written premium was flat, which the company said was due to lower average premiums.
The company said that was driven by growth in low risk properties which attracted cheaper pricing, and was partially offset by increasing policy volumes.
Its home insurance policies grew by 9 percent.
Looking ahead to the full-year result, Tower said gross written premium would likely grow by low-single digits, down from 5-10 percent, due to lower average premiums and subdued market conditions.
It did not expect economic conditions to improve in the second half.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
Original source: https://nz.mil-osi.com/2026/05/21/insurance-company-towers-interim-profit-more-than-halves/