Tower confirms loss in results for half year

Tower confirms loss in results for half year | Insurance Business New Zealand

Insurance News

Tower confirms loss in results for half year

Expectation for the full year also announced

Insurance News

By
Terry Gangcuangco

Tower Limited has published its financial results for the half year to March 31, 2023 – as forecast, the Kiwi insurer posted a loss due to large event costs.

Metric

HY23

HY22

Gross written premium

$241.9 million

$211.8 million

Net earned premium

$194.5 million

$171 million

Underwriting profit/(loss)

$(16.8 million)

$5.4 million

Profit/(loss) before taxation from continuing operations

$(8.3 million)

$4.8 million

Profit/(loss) after taxation from continuing operations

$(7.4 million)

$2.4 million

Profit/(loss) after taxation for the half year

$(5.1 million)

$3 million

Total comprehensive profit/(loss) for the half year

$(6.7 million)

$2.7 million)

According to the Kiwi insurer, its large event costs for the period amounted to $33.9 million. The corresponding figure in 2022 was $17.9 million. Meanwhile, it was noted that approximately 30% of claims for the Auckland Anniversary weather event and Cyclone Gabrielle have been completed.

Commenting on the numbers, Tower chief executive Blair Turnbull said: “We are proactively managing climate-related weather impacts through risk-based pricing and product innovations, keeping pace with inflation via targeted rating and underwriting actions and addressing increasing vehicle theft with rating and excess changes.

“Tower continues to grow both premium and customer numbers while reducing our expense ratio. We expect to deliver a full-year profit along with sustainable long-term growth in revenue and earnings.”

Turnbull, whose camp decided not to pay an interim dividend, also cited Tower’s investments in technology, operational efficiencies, and robust reinsurance as behind the company’s ability to address external challenges.

Excluding large event costs, Tower’s underlying net profit after tax stood at $23.6 million.

What do you think about Tower’s financial results? Share your thoughts in the comments below.