NZ insurer Tower expects reinsurance recoveries for floods & cyclone Gabrielle

New Zealand based insurance company Tower Limited has disclosed that it expects to make reinsurance recoveries for both of the countries recent severe weather disasters.

The insurer said that it remains resilient and is already progressing on its reinsurance reinstatement, to ensure it is fully-protected.

Tower CEO Blair Turnbull said, “Tower is focused on supporting customers and communities throughout the recovery from these events. We plan for such events, both financially and in our operations. Our continued growth and agility in responding to external challenges positions Tower positively for the future.”

Tower said that it has now received around 5,325 claims from the Auckland and Upper North Island weather event, that drove severe floods to that region of the country.

Tower said that it expects its excess-of-loss catastrophe reinsurance will be triggered, although it will retain $11.875 million of losses before that attaches.

The reinsurance recovery Tower will make is expected to be between $83.125 million and $113.125 million, based on a latest estimate that the Auckland and Upper North Island floods and severe weather will drive an ultimate cost of $95 million to $125 million for the insurer.

Separately, Tower said that it has received approximately 2,200 claims for damage caused by the more recent cyclone Gabrielle.

Given the recency of this event, Tower is still in the early stages of estimating the cost, but already the insurer is anticipating further reinsurance support.

“Tower expects Cyclone Gabrielle is likely to also trigger Tower’s reinsurance for catastrophe events, with an excess of $11.875m,” the company said.

With the reinstatement cover that Tower is working to put in place, the insurer aims to ensure it maintains sufficient protection for two additional catastrophe events, the company explained.