TWR - Tower Insurance.

[bull....]

If they value the company at $0.43 cents why are people paying $0.70 cents today? This share has got to dive IMO. You should be able to pick up at $0.40 in the near future, I hope I'm wrong but there current management is left wanting.

the ex price was 55c on todays price i think so thats why people buying at 72c as you can buy the new shares at 42c

amd as i was thinking they have potential to win up to 80m of the top of my head in litigation so you gotta think is that worth a punt 20 odd cents worth of share capital return?

[Scrunch]

If they value the company at $0.43 cents why are people paying $0.70 cents today? This share has got to dive IMO. You should be able to pick up at $0.40 in the near future, I hope I'm wrong but there current management is left wanting.

The rights issue price is just a price that underwriters of the issue are pretty confident the price will stay above so they make money taking up rights that aren't purchased. It's not a valuation. A 70c price just means the rights have a value of about 14c. At 70c you are buying a future share price of 56c and a right to buy another share at 42c that had a value of 14c. The maths is simple this time as it's a 1:1 rights offer.

[trader_jackson]

Might give this a punt if I can get it for under 70c... forsyth reckon 4c dividend next year and that its worth at least 10% higher than today's closing price...

Then again they also reckon PEB is worth 85 cents

[bull....]

Might give this a punt if I can get it for under 70c... forsyth reckon 4c dividend next year and that its worth at least 10% higher than today's closing price...

Then again they also reckon PEB is worth 85 cents

4c div definately possible but i still reckon it wont be to canterbury claims are nearly gone , anyway i brought some for a punt

[JeremyALD]

I think there's good opportunity here, but to be truly rewarded you're going to have to hold it for quite a while whilst they get the never ending Christchurch claims out of the way

[bull....]

I think there's good opportunity here, but to be truly rewarded you're going to have to hold it for quite a while whilst they get the never ending Christchurch claims out of the way

the big payday is if they win the litigations , the potential money involved is enough to buy back all shares being issued at the moment

[Fatboyj]

Whens this going to court and earliest tower/aig know if they're getting a payday. And if EQC coughs up, wont the money just go to the poor shmucks that have waited all this time for their claim to be resolved?

[bull....]

last day today i believe before they go ex

[trader_jackson]

last day today i believe before they go ex

Not quite...
https://www.nzx.com/announcements/310431

"Record Date for determining Entitlements: 7.00 pm, 22 November 2017"

Interesting to see after HBL not really down much despite no longer being entitled to participate in their rights issue... if Tower holds anything remotely close to 70 cents after the entitlement period, this would be most impressive!

[Snow Leopard]

last day today i believe before they go ex

Correct.


Not quite...
https://www.nzx.com/announcements/310431

"Record Date for determining Entitlements: 7.00 pm, 22 November 2017"...

Not quite...

The first date of trading without the rights entitlement is the trading day before the record date.

[trader_jackson]

Correct.



Not quite...

The first date of trading without the rights entitlement is the trading day before the record date.

Interesting! Thank you for clarifying Paper Tiger, and my apologies bull....

[Scrunch]

Interesting to see after HBL not really down much despite no longer being entitled to participate in their rights issue... if Tower holds anything remotely close to 70 cents after the entitlement period, this would be most impressive!

Agree but holding above 56c would be a good effort.

HBL's rights issue was a 1:15 and price close to the market price [within 15%] meaning the theoretical price drop on going ex was under 2 cents. 2c gets lost in HBL's daily movements.

TWR's is a 1:1 issue and is about 45% below market the markets pre-announcement price. The large number of rights and big discount to market price combine to create a large theoretical price drop on going ex. From a 70c price today, the new ex rights price should fall back to about 56c. The rights would then be trading at 14c as they still require another 42c payment.

[JeremyALD]

Some poor soul paid 70 cents for the shares today lol

[bull....]

Some poor soul paid 70 cents for the shares today lol

must not have realised what was happening? but hey im thinking one day they will be 70c again

[Balance]

must not have realised what was happening? but hey im thinking one day they will be 70c again

Best time to invest in financial services shares is when they are getting their guts kicked out of them, and during the inevitable capital raising to restore their financial balance.

Heartland/Marac is a prime example and if you go back far enough, all the Australasian trading banks were like that during the 1980s and 1990s.

[bull....]

Best time to invest in financial services shares is when they are getting their guts kicked out of them, and during the inevitable capital raising to restore their financial balance.

Heartland/Marac is a prime example and if you go back far enough, all the Australasian trading banks were like that during the 1980s and 1990s.

baring any big disasters and some success with litigation they could end up with too much money - not that that would be a bad thing

[Balance]

66c!

So pre-ex price is 90c!

What a turnaround in sentiment!

[JeremyALD]

66c!

So pre-ex price is 90c!

What a turnaround in sentiment!

I'm a bit confused about how this works. If I sell my shares today can I still participate fully in the rights issue?

[Balance]

I'm a bit confused about how this works. If I sell my shares today can I still participate fully in the rights issue?

https://www.nzx.com/announcements/310361

As I understand it, you do.

Ex date is today (21 Nov) so if you held the shares as at 5.00 pm yesterday (20 Nov), you are entitled and the rights have vested in you.

Record date is 22 Nov.

If you sell the shares today or tomorrow, transfer of your shares will only take place on T+2 = 23 Nov or 24 Nov, so you will still be recorded as the holder of the shares as at record date 22 Nov.

Hope that makes sense.

[Scrunch]

66c!

So pre-ex price is 90c!

What a turnaround in sentiment!

Unless there's a broker report out there putting them as a screaming good buy, my guess is the selling pressure of people raising cash to take up the rights should start in the next day or two.

[bull....]

Unless there's a broker report out there putting them as a screaming good buy, my guess is the selling pressure of people raising cash to take up the rights should start in the next day or two.

most people sitting on a loss , so its a good way to average down esp at 42c , the only sellers of rights will be people who cant afford to pay 42c i reckon. so they be the only sellers i reckon

[Balance]

most people sitting on a loss , so its a good way to average down esp at 42c , the only sellers of rights will be people who cant afford to pay 42c i reckon. so they be the only sellers i reckon

Appears to be good buying interest around as capital raising has been so very very well signaled?

[bull....]

Appears to be good buying interest around as capital raising has been so very very well signaled?

hopefully the instos will be buying up any rights available to average there price down even more and big hopeful is that it turns into a nuplex type opportunity - those who brought into nuplex similar situation were well rewarded a few yrs down the track

[Fatboyj]

Will/can Vero get in on this action?

[Snow Leopard]

Always one to dive back into the crocodile pit I bought a bucket of shares after the 1:1 was announced and having got the offer docs in the email today I have paid my $0.42s for another bucket load (though you have till 13-Dec to do it).

So currently sitting on a choice paper profit which hopefully will get bigger & bigger with time.
Though it may not.

Best Wishes
Paper Tiger

[bull....]

Always one to dive back into the crocodile pit I bought a bucket of shares after the 1:1 was announced and having got the offer docs in the email today I have paid my $0.42s for another bucket load (though you have till 13-Dec to do it).

So currently sitting on a choice paper profit which hopefully will get bigger & bigger with time.
Though it may not.

Best Wishes
Paper Tiger

like wise brought a bucket load after they announced the cap raise

[Arbroath]

I've tripled up in the rights issue - it was well signalled but I'm impressed at how strong Tower are trading during rights trading....clearly a lot of demand and value seen in the stock here...could be 70c+ by Xmas

[Balance]

I've tripled up in the rights issue - it was well signalled but I'm impressed at how strong Tower are trading during rights trading....clearly a lot of demand and value seen in the stock here...could be 70c+ by Xmas

Offshore buying from what I gathered.

[bull....]

I've tripled up in the rights issue - it was well signalled but I'm impressed at how strong Tower are trading during rights trading....clearly a lot of demand and value seen in the stock here...could be 70c+ by Xmas

70c you might be right the way its performing

[alistar_mid]

70c you might be right the way its performing

Just got in for as much as I could (doubled up) in the rights issue

[bull....]

the closing price in aus was worth 71c nz

[JeremyALD]

the closing price in aus was worth 71c nz

I'm a bit surprised, pleasantly though. The market cap after completion is going to be around 200m?

[bull....]

twr in nz is still trading at discount to aus

[Drummer]

Hi,

Anyone know if you can apply for more share under the offer, or is it just 1 for 1?

Thanks...

[JeremyALD]

Hi,

Anyone know if you can apply for more share under the offer, or is it just 1 for 1?

Thanks...

You can't apply for more

[Drummer]

Thanks Jeremy.

[Balance]

Last day to accept rights issue.

Insiders have been buying - great sign!

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/311652/271433.pdf

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/311796/271618.pdf

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/311355/271039.pdf

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/311355/271040.pdf

[Fatboyj]

IF by any chance there was another take over in the works, would these recent insider purchases be considered naughty?

[Balance]

IF by any chance there was another take over in the works, would these recent insider purchases be considered naughty?

I suspect they are buying on the basis that all pertinent information are in the market, including the possibility of another takeover (alerted to by Commerce Commission).

Interesting that they have been buying post rights, rather than cum-rights.

[bull....]

gotta say this was a great investment buying after they announced the rights issue, 42c rights vrs 68c on market 62% return in less than a month , could be more maybe in time

[Balance]

gotta say this was a great investment buying after they announced the rights issue, 42c rights vrs 68c on market 62% return in less than a month , could be more maybe in time

Unfortunately, most TWR share holders are still sitting on huge losses, especially those who hung onto their shares in anticipation of the takeover succeeding at $1.40.

Still, this capital raising is probably the most well signalled rights issue ever so should not be a surprise that it will be a successful one.

[bull....]

Unfortunately, most TWR share holders are still sitting on huge losses, especially those who hung onto their shares in anticipation of the takeover succeeding at $1.40.

Still, this capital raising is probably the most well signalled rights issue ever so should not be a surprise that it will be a successful one.

probably correct that most holders are sitting on losses , i hope they had money too take up there rights.

[JeremyALD]

Personally I bought at $1.27 and at current SP have just gone into positive territory.

I have learnt a lot more about Tower recently and they are well set for the future. They have a strong strategy, good engagement and with the capital raise look well set for the future. As a result not tempted to sell down. Could see this recovering to $1 in time once they start paying dividends and the earthquakes are out of the way.

[Balance]

Personally I bought at $1.27 and at current SP have just gone into positive territory.

I have learnt a lot more about Tower recently and they are well set for the future. They have a strong strategy, good engagement and with the capital raise look well set for the future. As a result not tempted to sell down. Could see this recovering to $1 in time once they start paying dividends and the earthquakes are out of the way.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/311986/271844.pdf

Chairman seems to agree with you - he loaded up at 68c last.

[Balance]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/311986/271844.pdf

Chairman seems to agree with you - he loaded up at 68c last.

Always right to follow insiders when they buy.

[JeremyALD]

Always right to follow insiders when they buy.

What about Mr Rigby buying up big time in MPG lol

[Drummer]

Good result, lots of support from existing holders

COMPLETION OF RIGHTS OFFER

Tower Limited (NZX/ASX: TWR) is pleased to
announce the closure of its
underwritten 1 for 1 pro rata renounceable rights offer announced on 14
November 2017, with strong shareholder
support.

Approximately 148.4 million new shares were taken up by
shareholders,
representing approximately 88.0% of the new shares available
under the rights
offer. This represents gross proceeds of approximately $62.3
million.

The underwriter of the offer, Goldman Sachs New Zealand Limited,
has agreed
to take up approximately 20.3 million shares which were not taken
up under
the offer.

New shares taken up under the rights offer are
expected to be allotted and
begin trading on 20 December 2017.

[Balance]

Good result, lots of support from existing holders

COMPLETION OF RIGHTS OFFER


The underwriter of the offer, Goldman Sachs New Zealand Limited,
has agreed
to take up approximately 20.3 million shares which were not taken
up under
the offer.


Amazing that 12% of shareholders did not take up the offer! They could have sold the rights and there certainly was plenty of demand for them through the rights trading period.

In any case, it is an excellent outcome and no doubt Goldmans will be pretty happy to accumulate a nice holding like 20.3m shares to work towards the next takeover offer for Tower.

Watch for Commerce Commission case against Vero for buying the 20% without prior clearance. If Vero is required to sell, that will no doubt be sold to a friendly party, triggering a takeover.

[JeremyALD]

All very positive. The change in sentiment is very strong at the moment.

And for the 12% that didn't take up rights they have pretty much thrown away money. Which is very silly. They could of just sold their shares and bought the new shares with that money. They would of made over 20%!

[Balance]

All very positive. The change in sentiment is very strong at the moment.

And for the 12% that didn't take up rights they have pretty much thrown away money. Which is very silly. They could of just sold their shares and bought the new shares with that money. They would of made over 20%!

There were 28,000 small holdings (between 1 to 5,000 shares) registered as Tower shareholders last year - suspect that's the reason why many simply decided to ignore the rights issue - they have been burnt enough?

Agree hell of a pity though as they can recapture some value by taking up their rights.

[JeremyALD]

There were 28,000 small holdings (between 1 to 5,000 shares) registered as Tower shareholders last year - suspect that's the reason why many simply decided to ignore the rights issue - they have been burnt enough?

Agree hell of a pity though as they can recapture some value by taking up their rights.

Hmmm well I didn't get a letter or email about the rights offer and I know a couple of people who didn't either (and I had to remind) so maybe that's part of the reason too. They just didn't know about it. With that many shares you probably don't follow the SP that closely.

Anyway 88% is still pretty good. Be an exciting year for the company.

[Balance]

https://www.stuff.co.nz/business/99886319/colliers-manager-takes-tower-to-task-loses

Things starting to go Tower's way.

[hogie]

https://www.stuff.co.nz/business/99886319/colliers-manager-takes-tower-to-task-loses

Things starting to go Tower's way.


Does anyone see this stock trending upwards any time in the near future?

[JeremyALD]

Does anyone see this stock trending upwards any time in the near future?

It already is. It's gone up from 56 cents to 70 cents so close to 20% since announcement of rights issue

[winner69]

For a century or so insurance companies invested heaps of money (premiums) in oil, coal and mining companies. Always a ready source of capital they were.

Ironic they now bemoan the consequences of those investments as climate change seems to cause all these catastrophic storms.

But then again we as the insured are actually the losers aren’t we with increased premiums.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/314100/274294.pdf

[hogie]

The "bad luck" for TWR continues ... that's a pity ... was hoping for a resumption of dividends this year and some decent capital gains too :(

[winner69]

The "bad luck" for TWR continues ... that's a pity ... was hoping for a resumption of dividends this year and some decent capital gains too :(

Not really ‘bad luck’ is it - aren’t they in the insurance business and need to manage risk. Maybe their premiums were just too ‘competive’ for their own good.

Perhaps you meant that they are not going to be fortunate to have a boomer year with no storms to stuff on.

Climate change going to make it difficult for insurance ....things become more of a punt for them

[Beagle]

One of my clients is a weather contractor for metservice. Has been sending up those weather information gathering balloons and reporting back climate info for over 50 years. I love those old guys that have many decades of experience and he's an absolute gentleman too. I asked him some time back if he thinks climate change is real and about these so called 1 in 100 year weather events. He just laughed and told me to expect these so called 1 in 100 year weather events every other year now, probably more often. With ongoing risk of the shaky isles rocking again and extreme weather events far more often than historically I reckon anyone who's invested in any insurer is a very brave investor.

[D. Fender]

I reckon anyone who's invested in any insurer is a very brave investor.

I reckon investing in insurance companies these days is basically going long on Black Swan events. Picking up pennies in front of steam rollers.

[hardt]

I reckon investing in insurance companies these days is basically going long on Black Swan events. Picking up pennies in front of steam rollers.

What about picking up pennies behind the steam roller?

[trader_jackson]

http://www.sharechat.co.nz/article/c09af390/suncorp-s-nz-insurance-unit-lifts-1h-profit-81-as-claims-dwindle-in-quake-free-period.html

Surely this is good news for tower?

[D. Fender]

Could be. Let’s see whether Cyclone Gita or any other severe weather events affect NZ this year. And let’s hope there isn’t another big quake. That’s the thing with insurance - one black swan event and all your profits (and then some) could be gone in minutes. We’re having a lot more “one in a hundred year” events lately, and as CBL showed the actuarial assumptions are not always up to scratch.

[hogie]

Wowee TWR up 8.8% at the open ... didn't think todays news was anything we didn't already know ...

Hope they have good food at the AGM this afternoon :D

[Balance]

Wowee TWR up 8.8% at the open ... didn't think todays news was anything we didn't already know ...

Hope they have good food at the AGM this afternoon :D

Looks like Tower's fortunes have indeed turned?

1. https://www.nzx.com/announcements/314906

"Policy numbers have increased by more than 5,000 in the four months to 31 January 2018, and combined with improved pricing, has led to GWP for the New Zealand book growing 14.3% compared the same period prior year. Despite accelerating activity in the business, management expenses remain contained and in line with the same period last year."

At that rate, GWP will be up $21m for HY18 - less reinsurance but with expenses contained, could be $18m straight to bottom line.

Most important thing is that the Tower brand appears intact - and business is growing.

2. https://www.nzx.com/announcements/314891

Good to get that $22m in - cash in while profit impact is non-cash.

There was some uncertainty about the collection of this reinsurance.

[Balance]

Best time to invest in financial services shares is when they are getting their guts kicked out of them, and during the inevitable capital raising to restore their financial balance.

Heartland/Marac is a prime example and if you go back far enough, all the Australasian trading banks were like that during the 1980s and 1990s.

Journey of 1,000 miles start with a first foot-step.

[Balance]

Journey of 1,000 miles start with a first foot-step.

http://www.scoop.co.nz/stories/BU1803/S00041/tower-shares-rise-37-on-dividend-plans.htm

Resumption of dividend payments on the cards from this year.

Starting to look like Heartland after the restructuring of Marac.

[Brain]

Many punters will be a bit shy in investing in this as after all it is an insurance company. CBL was looking ok last year to many and look what happened there. TWR say they may be resuming dividends if profit allows but I notice that they are not brave enough to predict a profit.

[Arbroath]

Many punters will be a bit shy in investing in this as after all it is an insurance company. CBL was looking ok last year to many and look what happened there. TWR say they may be resuming dividends if profit allows but I notice that they are not brave enough to predict a profit.

Brain...IMHO they are quite different situations. CBL has/had some quite questionable characters behind it, expanded way too agreesively and got caught out not unlike an overly aggressive finance company in the mid-2000's.

Tower is a sound business that got badly hurt by a huge event (Chch) and has managed to survive as its balance sheet was just strong enough to cope, has raised more capital to strenghten the balance sheet (which was not an option for a dodgy operator like CBL), and is making an operating profit month to month which is helping strengthen the balance sheet. Although FY18 will likely be another loss due to the Peak Re write-off the major risks for Tower are being settled and the cashflows are strenghtening. I'd expect at least a 2cps dividend in November this year ($6.7m cost) and all going well 5cps in FY19 ($16.8m cost).

[BlackPeter]

Brain...IMHO they are quite different situations. CBL has/had some quite questionable characters behind it, expanded way too agreesively and got caught out not unlike an overly aggressive finance company in the mid-2000's.

Tower is a sound business that got badly hurt by a huge event (Chch) and has managed to survive as its balance sheet was just strong enough to cope, has raised more capital to strenghten the balance sheet (which was not an option for a dodgy operator like CBL), and is making an operating profit month to month which is helping strengthen the balance sheet. Although FY18 will likely be another loss due to the Peak Re write-off the major risks for Tower are being settled and the cashflows are strenghtening. I'd expect at least a 2cps dividend in November this year ($6.7m cost) and all going well 5cps in FY19 ($16.8m cost).

I guess quite easy to call CBL dodgy now. I don't disagree with this qualification, but I think Brains point was that 2 months ago everybody thought as well that CBL is a quite healthy company with nothing but a decent and honest board. Which of their directors did you consider as questionable last year?

It just appears to show that our checks and balances don't seem to work, which obviously throws a shadow on similar sort of companies operating under NZX and RBNZ rules. Sure - they might be all good guys, but nobody really knows given that the regulator seems to be asleep and mislaid their dentures anyway.

[winner69]

There’s one or two commentators around who don’t say nice things about the Tower Chairman ...just saying in the context of this discussion comparing CBL and TWR

[Balance]

Many punters will be a bit shy in investing in this as after all it is an insurance company. CBL was looking ok last year to many and look what happened there. TWR say they may be resuming dividends if profit allows but I notice that they are not brave enough to predict a profit.

A bit like saying that HBL (ex Marac) should have been avoided because of the collapse of all the other finance companies?

[Balance]

There’s one or two commentators around who don’t say nice things about the Tower Chairman ...just saying in the context of this discussion comparing CBL and TWR

He certainly is not widely admired in the market!

But definitely feared, especially by the rogue directors of the 1980s.

[Brain]

A bit like saying that HBL (ex Marac) should have been avoided because of the collapse of all the other finance companies?

At the time I was very sceptical of finance companies but after Heartland became a bank that was the game changer for me.

[Balance]

Share price now at 75.5c - big recovery after the rights issue.

Next upside may come from settlement with EQC - like the fact that CFO says estimate is a modest one!

https://www.interest.co.nz/insurance/92440/jen%C3%A9e-tibshraeny-looks-where-towers-%C2%A0three-months-after-completing-capital-raise-and

"The major risk Tower still faces is over how much it will be reimbursed by the Earthquake Commission (EQC) for Canterbury repairs and rebuilds it paid for on behalf of the agency.

It has accounted to receive $65m, however Wright says this is a modest estimate."

[bull....]

Share price now at 75.5c - big recovery after the rights issue.

Next upside may come from settlement with EQC - like the fact that CFO says estimate is a modest one!

https://www.interest.co.nz/insurance/92440/jen%C3%A9e-tibshraeny-looks-where-towers-%C2%A0three-months-after-completing-capital-raise-and

"The major risk Tower still faces is over how much it will be reimbursed by the Earthquake Commission (EQC) for Canterbury repairs and rebuilds it paid for on behalf of the agency.

It has accounted to receive $65m, however Wright says this is a modest estimate."

biggie alright , a favourable result could see us over a dollar again

[hogie]

Share price now at 75.5c - big recovery after the rights issue.

Next upside may come from settlement with EQC - like the fact that CFO says estimate is a modest one!

https://www.interest.co.nz/insurance/92440/jen%C3%A9e-tibshraeny-looks-where-towers-%C2%A0three-months-after-completing-capital-raise-and

"The major risk Tower still faces is over how much it will be reimbursed by the Earthquake Commission (EQC) for Canterbury repairs and rebuilds it paid for on behalf of the agency.

It has accounted to receive $65m, however Wright says this is a modest estimate."


Looking forward to more positive news in the near future considering I picked up my allotment for ~66.5c ... however the granddad I talked to in the lift at the AGM wasn't happy as he purchased his at $2 ... oops =P

[Sideshow Bob]

... however the granddad I talked to in the lift at the AGM wasn't happy as he purchased his at $2 ... oops =P

That's a few sausage rolls he'd need to eat to try to recoup his losses!

[Balance]

That's a few sausage rolls he'd need to eat to try to recoup his losses!

A few less than he thought if he participated in the 1:1 rights issue at 42c - $1.21 and he breaks even.

:D

[Balance]

A few less than he thought if he participated in the 1:1 rights issue at 42c - $1.21 and he breaks even.

:D

Impressive price action today - a decent block of shares at 77c got taken out.

And 460,000 shares were crossed at today's high of 77.5c after market close.

Somebody is keen to get stock!

Maybe the granddad will be happier next AGM?

[trader_jackson]

Some say we'll be back in the 80's by the end of the week ;)

[golden city]

I am picking it will cross 80c too this week. Could be 85

[Balance]

https://www.nzx.com/announcements/315272

Huge development - Vero out and Bain Capital Credit in.

[Balance]

Famous last words from Vero (Suncorp) less than a month ago!

http://www.sharechat.co.nz/article/92c4a90a/suncorp-in-no-rush-to-ditch-tower-stake-but-not-a-long-term-holder.html

Headline : "Suncorp In No Rush To Ditch Tower Stake"

[Balance]

https://www.nzx.com/announcements/315274

Sold to Bain Capital Credit at 80c per share.

Takeover offer coming, me thinks ....

[JeremyALD]

To sell 20% of your stake at a premium to the current SP is very encouraging for shareholders. Glad I have a little stake in this gem. They've done really well fighting through a lot of events beyond their control

[bull....]

another impediment gone just the chch legacy left , once thats sorted i reckon they be taken over again .. kept a very small parcel from 42c raising

[alistar_mid]

I am picking it will cross 80c too this week. Could be 85

lol good call, wonder if I should get out I'm sitting on +38%

[rmnz]

Decisions decisions, I'm on a 48% gain at the moment (admittedly on a relatively small holding)

[Balance]

another impediment gone just the chch legacy left , once thats sorted i reckon they be taken over again .. kept a very small parcel from 42c raising

Certainly takes away a huge road block for Tower - market had some expectations that Vero was going to be forced by the Commerce Commission to sell its 19.9% stake.

Overhang is out of the way and the shares have gone to a very good home!

Check into Bain Capital Credit background and it gives a lot of confidence that either Tower will be taken over or with Bain as a cornerstone shareholder, Tower will do very well indeed!

[Balance]

must not have realised what was happening? but hey im thinking one day they will be 70c again

Thinking $1.70 next?

:D

[winner69]

Thinking $1.70 next?

:D

No reason why it shouldn’t mate.

[whatsup]

Good start today, obviously S Hers await on events out of their control but imo a brighter outlook without Vero.

[Balance]

Good start today, obviously S Hers await on events out of their control but imo a brighter outlook without Vero.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12008595

Like the way she wrote the share price as closing at XX.

Guess next stop must be XXX? :D

UNUSUAL RISE?

Tower says a number of significant positive announcements may be behind its share price rise in the last two weeks.

But Stock Takes can't help wondering if speculation around the sale of Vero's stake has been a factor.

Shares in Tower rose by 16 per cent between Tuesday February 27 and Wednesday March 7 from 67c to 78c.

Yesterday Vero revealed it had sold its 19.9 per cent Tower stake to US private equity firm Bain Capital for 80c a piece in a deal worth $53.9 million.

Tower's share price had been relatively flat since July last year. Since the beginning of last week it has only had one price sensitive announcement - its settlement with reinsurer Peak Re.

The agreement resulted in Tower getting $22m out of the $43.75m it had been seeking and will see a $15.6 mllion hit on its after tax profit this year.

A Tower spokesman said the settlement was positive because it had removed a significant risk from its balance sheet.

He also pointed to an update on its performance at its annual general meeting on March 1 that signalled strong growth above its expectations and the likely resumption of its dividend after being on hold since 2016.

"It has been pleasing to see the hard work our team are putting in to transform our business is delivering improving results, ultimately leading to increasing shareholder value."

Shareholders will likely be pleased to see the issue of Vero's stake resolved as well.

Vero was left holding the 19.9 per cent after the Commerce Commission turned down its application to take over Tower last year.

But it opens up more questions about what the new owner will do. Is this the start of a another takeover? Or just an investor taking a punt? Time will tell.

Tower shares closed on XX yesterday.

[Anna Naum]

Nice upside move for the week with solid volume....maybe this week we will hear more of Bains intentions for TWR.

[Balance]

https://www.nzx.com/announcements/315355

Another tick for Tower.

Interesting (and rewarding) times ahead!

[trader_jackson]

https://www.nzx.com/announcements/315355

Another tick for Tower.

Interesting (and rewarding) times ahead!

What was CBL's rating again?

[BlackPeter]

What was CBL's rating again?

Good point. And yes, "A-" was the same rating CBL was holding at the time of its trading halt leading into suspension and liquidation. Good solid company with robust finances and a well caring and competent board.

Still - I don't think you can rely on this happening - rating agencies proved time and again that they are absolutely clueless - just think back at he GFC!

[bull....]

another positive announcement , takeover coming i reckon otherwise why would private equity buy a minority stake?

[Balance]

Good point. And yes, "A-" was the same rating CBL was holding at the time of its trading halt leading into suspension and liquidation. Good solid company with robust finances and a well caring and competent board.

Still - I don't think you can rely on this happening - rating agencies proved time and again that they are absolutely clueless - just think back at he GFC!

Yup - Forsyth Barr's Credit Sail was AA+ rating and it went belly up at the first sign of trouble.

[trader_jackson]

https://www.stuff.co.nz/business/102834727/towers-move-to-charge-more-for-highrisk-properties-is-a-backwards-step-for-society

Don't know what to think really...

[traineeinvestor]

https://www.stuff.co.nz/business/102834727/towers-move-to-charge-more-for-highrisk-properties-is-a-backwards-step-for-society

Don't know what to think really...

The only weasel in sight is the "journalist" who seems to think that people with lower risk properties and Tower shareholders should subsidise people with higher risk properties. Good move by Tower - I don't currently hold but am becoming interested.

[hogie]

The only weasel in sight is the "journalist" who seems to think that people with lower risk properties and Tower shareholders should subsidise people with higher risk properties. Good move by Tower - I don't currently hold but am becoming interested.

Totally true which is why I have purchased a relatively substantial share holding and now have almost all my insurances through Trademe/Tower (lowest insurance premiums in Auckland!) ... definitely a good move from a company that has really struggled to battle through the numerous natural disasters that have hit certain regions of NZ and the islands.

[winner69]

The only weasel in sight is the "journalist" who seems to think that people with lower risk properties and Tower shareholders should subsidise people with higher risk properties. Good move by Tower - I don't currently hold but am becoming interested.

Sounds like Auckland is becoming a higher risk area ....better up their premiums I think

[boysy]

well the 6 month result out tomorrow wonder if the stated turn around has finally come ....

[peat]

not a good actual result - caused by one offs though, so can we forgive?
Or will there just be different one offs next time.
Some companies are just like that huh?

[Balance]

not a good actual result - caused by one offs though, so can we forgive?
Or will there just be different one offs next time.
Some companies are just like that huh?

No surprises in the results - all the one-offs were announced to the market previously.

[trader_jackson]

Some were expecting a dividend this half, although seems the 'transformation' is well underway and showing promising signs.

[winner69]

Pack of bastards those guys at Tower ....must be one of the most hated industries in the country ...but besotted shareholders probably happy has
https://www.interest.co.nz/opinion/94435/public-wrongly-lead-understand-97-towers-customers-will-receive-home-insurance-premium

Can’t wait until Auckland premiums go up heaps as every time the wind blows trees fall over and when it rains it always seem to flood ......currently Auckland premiums being subsided by Wellington and other parts of the country

[boysy]

Seems to be a fairly effective tool at getting rid of high risk existing tower clients - one has to question how other insurers will calculate these parties premiums should they want cover. The question has to be how much new low risk business will tower need to write to offset these lost clients as a result ?

[traineeinvestor]

Pack of bastards those guys at Tower ....must be one of the most hated industries in the country ...but besotted shareholders probably happy has
https://www.interest.co.nz/opinion/94435/public-wrongly-lead-understand-97-towers-customers-will-receive-home-insurance-premium

Can’t wait until Auckland premiums go up heaps as every time the wind blows trees fall over and when it rains it always seem to flood ......currently Auckland premiums being subsided by Wellington and other parts of the country

No publicity is better than stuff like this. Sounds a lot like the Auckland City Council's annual spin on increasing rates by more than the rate of inflation every year (i.e. complete BS). TWR could cut some overheads by getting rid of the PR department

That said, TWR (and other insurers) should be using a risk based approach to determining premiums. Areas more likely to experience earthquakes should pay more than those which don't. Ditto floods, typhoons and stampeding livestock. Even those who are not shareholders have a vested interest in insurance companies making a decent profit so they can build up enough reserves to handle a spate of claims should a major disaster strike. Taking insurance from a company which can't absorb significant losses is no insurance at all.

Disclosure: none

[Baa_Baa]

Don't mention that Auckland is built on Volcanoes 🙊🙉🙈

[Dassets]

So Tower sells its life business to a bunch of guys in Australia in 2014 for $36m under the watch of Michael Stiassny. Stuff today says that business is being closed down and its shareholders may be getting $160m. Not a bad return imo.

[Balance]

So Tower sells its life business to a bunch of guys in Australia in 2014 for $36m under the watch of Michael Stiassny. Stuff today says that business is being closed down and its shareholders may be getting $160m. Not a bad return imo.

https://www.stuff.co.nz/business/money/105284474/ninefigure-payday-beckons-for-aussies-planning-to-close-kiwi-insurance-fund

One of those financial engineering deal by the buyers - basically to close out the policies of those who have been paying for their life covers over a long period in time.

As for Tower, it was a case of selling assets and businesses or go under - not much choice there.

[trader_jackson]

You'd think with the general insurance side of things seemingly doing well-ish for the big Aussie insures (or at least the market thinks so with a generally positive share price reaction after results are announced) that things would be going well-ish for Tower...

[Arbroath]

You'd think with the general insurance side of things seemingly doing well-ish for the big Aussie insures (or at least the market thinks so with a generally positive share price reaction after results are announced) that things would be going well-ish for Tower...

TJ - I might have to eat sand with this prediction but I'd say Tower will be up 10%+ after they next report as think the market is seriously underestimating the underlying improvement in their business. Premium hikes and volume growth despite losing a few higher risk rated customers they don't actually want anymore.

[boysy]

Wonder when they will provide the next update - last year they provided an updated on 31/08 for 4 months through 31/07 would imagine they might follow the same logic this year ....

[boysy]

no trading update so far or guidance provided in the HY re expected full year result ....

[trader_jackson]

I see it as no news is good news...
Quietly confident... sort of

[boysy]

Agreed imagine things are in line hence no need to provide a update to market. This being said would be good to see further progress in the FY result, resumption of a divi wouldn't do any harm either ....

[boysy]

SP seems to be creeping up of late good news in the works ...

[boysy]

Decent interest today SP up to 0.81 on turnover of 1.6m shares what’s bubbling away ....

[trader_jackson]

And as some of you will know, I was just thinking of topping up!

[boysy]

glad i loaded up at 74c makes you wonder those results are going to look like ....

[trader_jackson]

Topped up today at 78c after having had the order in for a while

[boysy]

would be good to get an update right about now ....

[boysy]

from the HY report - resumption of a divi (assuming no further one offs) could lead a few divi hounds to TWR ....

Solid capital base and commitment to efficient capital management
• Tower’s Board and management team remain strongly committed to paying dividends
• The Board intends to recommence dividends at the 2018 Full Year, subject to financial performance

2017FY report was provided in late November last year so not long to wait either way ....

[trader_jackson]

I thought I was lucky to get in a 78 before results announcement in just over a months time but now at 75c

A small someone definitely wants out by the looks of it...

I could do with around 3c per share dividend announced at full year...

Forsyth reckon they'll do a 3.0cps dividend but what do they know

[Timesurfer]

The moon man announced another impending earthquake?
I had some shares a while back but decided it wasn't a company for me as I wake up in the middle of the night wonder if that was ground shaking!

[boysy]

Someone wants out another opportunity to buy at this level which is good ...

[trader_jackson]

over 3 and a half million shares changed hands on the close was it?!
Am I reading that right?

[boysy]

Yep someone keen to buy in and someone else willing to cash out ...

[Scrunch]

over 3 and a half million shares changed hands on the close was it?!
Am I reading that right?

Not sure. The anzsecurities graph has a huge spike at 2pm at 73.5 so I don't think the order was at the close. But yes a big trade or trades.

[winner69]

Strong growth continues but still losing money

Pity there are so many storms and fires these days ......cynics might say it’s insurors in general comeuppance for making so much money in past years by investing the premium float and making heaps from bad companies that caused climate change

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/327479/291369.pdf

[McGinty]

And the award for the grossly over use of the words "strong growth" goes to.........that's right, Tower.

I counted 5 times in the Media release alone.

I guess if you just cherry pick out the highest growth figure "core NZ business" of 11.9% and forget about the rest of the business it's worthy of a "strong growth" (Even if you report another loss - 4 years in a row now).

The market doesn't seem overly excited about it though.

[Arbroath]

Alot of if,buts and maybe's but Tower are trading on 11.5x FY19 forecast earnings and a potential gross yield of 7.4% at the mid-point of the dividend policy. Given their track record probably worth waiting to see actual recommencement of dividends but the business does seem to be making real progress despite all the noise in the results the past 2 years+

[McGinty]

Alot of if,buts and maybe's but Tower are trading on 11.5x FY19 forecast earnings and a potential gross yield of 7.4% at the mid-point of the dividend policy. Given their track record probably worth waiting to see actual recommencement of dividends but the business does seem to be making real progress despite all the noise in the results the past 2 years+

Most likely not anything like 7.4% gross!

There is a difference between "underlying NPAT in FY19 in excess of $22m" and "Tower will pay a dividend of 50% - 70% of reported NPAT"

[trader_jackson]

At first, I was a bit disappointed, but then I saw guidance of $22m+ underlying, and after considering all the considerations, factoring in all the factors, and weighing up all the weightings, I thought there is a good chance NPAT will be pretty ok... say $17m... of which, say 60%, will be paid out in dividends... about 3 cents a share - 4% isn't great, but given TWR is a growth company (or this is the way management see it), that ain't to bad I suppose

[Jim]

Tower has been a dog since GPG forced it to sell all the valuable assets, Sold out and laughing to the bank No more take over opportunity for the poor shareholders unless you are stupid enough to wait for another 100 years

[Balance]

https://news.sky.com/story/esure-agrees-12bn-takeover-from-bain-capital-11472305

The stage is set.

[Marilyn Munroe]

https://news.sky.com/story/esure-agrees-12bn-takeover-from-bain-capital-11472305

The stage is set.

Are you suggesting the fee driven reef fish in the marger and aquistion parts of merchant banks are sensing the start of a trend and are casting about for takeover targets they can shop around?

Boop boop de do
Marilyn

[Marilyn Munroe]

From the Newroom web site;

"IAG NZ profit margins soar...."

Is this a case of a rising tide lifting all boats?

https://www.newsroom.co.nz/2019/02/07/433061/iags-nz-premium-growth-and-margins-outpace-australia

Boop boop de do
Marilyn

[Balance]

From the Newroom web site;

"IAG NZ profit margins soar...."

Is this a case of a rising tide lifting all boats?

https://www.newsroom.co.nz/2019/02/07/433061/iags-nz-premium-growth-and-margins-outpace-australia

Boop boop de do
Marilyn

Should be and it's great to know that while many of us end up paying higher premiums due to the earthquakes etc, we have some TWR shares to provide a natural hedge against the rising premiums hopefully!


The bigger game is still takeover by Bain imo.

[hogie]

Should be and it's great to know that while many of us end up paying higher premiums due to the earthquakes etc, we have some TWR shares to provide a natural hedge against the rising premiums hopefully!


The bigger game is still takeover by Bain imo.

Hmm I recently changed insurance from Trademe (underwritten by Tower) to Initio (underwritten by IAG) ... I hope TWR can turn things around because it has been one of my biggest gambles and best returning stocks lately!

[boysy]

continuing to top up on these unloved shares, expect a bit of a run should they announce half way decent results like the other insurers mentioned. Would be good to see that divi recommence, will it be at the half or full year point is the question ....

[stoploss]

continuing to top up on these unloved shares, expect a bit of a run should they announce half way decent results like the other insurers mentioned. Would be good to see that divi recommence, will it be at the half or full year point is the question ....
Not sure if result will reflect the rise of other insurers ... as per the post of hogie above , I think they will be losing market share . Have heard a lot of people finding their quotes not competitive and switching .
This doesn’t take the T/O scenario away , but might be some tough times till that eventuates .

[Arbroath]

Not sure if result will reflect the rise of other insurers ... as per the post of hogie above , I think they will be losing market share . Have heard a lot of people finding their quotes not competitive and switching .
This doesn’t take the T/O scenario away , but might be some tough times till that eventuates .

I disagree stoploss...I've moved 3 policies to Tower and one to AA in the last 12 months due to more competitive quotes and better online systems. We'll find out in due course but I think Tower's result will be very good at an operational level. There's still the potential for some writeoffs etc with Chch and the big issue will be whether the Board signal their confidence in the outlook by paying an interim dividend.

[stoploss]

I disagree stoploss...I've moved 3 policies to Tower and one to AA in the last 12 months due to more competitive quotes and better online systems. We'll find out in due course but I think Tower's result will be very good at an operational level. There's still the potential for some writeoffs etc with Chch and the big issue will be whether the Board signal their confidence in the outlook by paying an interim dividend.
Maybe I should have qualified that as the Wellington region . They maybe more risk averse / competitive in other areas with less perceived risk .
Time will tell .

[boysy]

Going long on Auckland I hear and actively trying to divest policies in high risk areas through repricing. Will be interesting to see how this is communicated in the market update ....

[Arbroath]

Maybe I should have qualified that as the Wellington region . They maybe more risk averse / competitive in other areas with less perceived risk .
Time will tell .

Yes good point. I'm in Taranaki which they price as lower risk so the differentiation helps me. What matters is how it works for them overall - premiums less modelled risk for reinsurance costs is the net measure given we don't know where the next earthquake/disaster will actually occur.

[Filthy]

Maybe I should have qualified that as the Wellington region . They maybe more risk averse / competitive in other areas with less perceived risk .
Time will tell .

I am in Wellington and TWR recently offered the best solution & best value for money for our place. Sign-up & Quote process was all online and they were great to deal with. Broker & competitors all came-up about $200+pa more expensive for a worse offering, policy and cover. Having said that, we are on a hill (bedrock) overlooking the water with no risk (touch-wood) from liquefaction / storm damage / sea / flooding. I would guess it would be a lot different it we were located elsewhere i.e. some friends of ours in Petone had their premiums almost double (ouch). Car also ended up with trademe, which is underwritten by TWR. Again, simple online process and good value when I did the comparison.

[Filthy]

disc. non-holder and not looking to buy

[Scrunch]

I am in Wellington and TWR recently offered the best solution & best value for money for our place. Sign-up & Quote process was all online and they were great to deal with. Broker & competitors all came-up about $200+pa more expensive for a worse offering, policy and cover. Having said that, we are on a hill (bedrock) overlooking the water with no risk (touch-wood) from liquefaction / storm damage / sea / flooding. I would guess it would be a lot different it we were located elsewhere i.e. some friends of ours in Petone had their premiums almost double (ouch). Car also ended up with trademe, which is underwritten by TWR. Again, simple online process and good value when I did the comparison.

I was recently looking for insurance quotes for a single story house on the flat in Lower Hutt. The primary natural hazard risk would be earthquake damage. Vero came in better than others including State and Tower. I don't see this as a particular negative for Tower because they are actively trying to orientate their portfolio away from perceived higher earthquake risk locations like the Wellington region. If I was in an area like Hamilton or Auckland and they weren't price competitive I'd be concerned.

[Marilyn Munroe]

From the interest.co.nz web site

"Suncorp Group today announced net profit after tax (NPAT) of A $250 million for the six months to 31 December 2018. The New Zealand business achieved NPAT of NZ$120 million, up +79% on the prior corresponding period."

Suncorp in NZ trades under the brands Vero, AA Insurance and ANZ Insurance.

Balance will be wondering whether he should chill some bubbly for the TWR announcement.

Boop boop de do
Marilyn

[Balance]

From the interest.co.nz web site

"Suncorp Group today announced net profit after tax (NPAT) of A $250 million for the six months to 31 December 2018. The New Zealand business achieved NPAT of NZ$120 million, up +79% on the prior corresponding period."

Suncorp in NZ trades under the brands Vero, AA Insurance and ANZ Insurance.

Balance will be wondering whether he should chill some bubbly for the TWR announcement.

Boop boop de do
Marilyn

TWR should announce a good result indeed, given how the other insurance companies have creamed huge profit growth from little ole NZ.

Reporting date is a long way away though - May so a lot can happen in between.

Here's thinking that Bain will want to strike before the results come out!

[winner69]

Pretty good but no doubt no change to guidance is a bit of a disappointment to sum.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/330751/295164.pdf

That $10m they mention ...does that mean if no disasters they can add that back to profit?

[Balance]

Pretty good but no doubt no change to guidance is a bit of a disappointment to sum.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/330751/295164.pdf

That $10m they mention ...does that mean if no disasters they can add that back to profit?

Assume that must be the case. Treat any upside or downside from that provision as an abnormal?

All good and steady as she goes sort of business update.

Revenues are growing, expenses are under control, claims ratio are down and on track to delivering NPAT (IN EXCESS) of $22m.

At this rate, better that Bain not take the company over!

[boysy]

No news is good news re the latest market update I guess .... looking very cheap if they hit that $22m NPAT and recommence paging Divis .....

[trader_jackson]

At first, I was a bit disappointed, but then I saw guidance of $22m+ underlying, and after considering all the considerations, factoring in all the factors, and weighing up all the weightings, I thought there is a good chance NPAT will be pretty ok... say $17m... of which, say 60%, will be paid out in dividends... about 3 cents a share - 4% isn't great, but given TWR is a growth company (or this is the way management see it), that ain't to bad I suppose

4 months on, if NPAT is in excess of $17m for FY19, that will be a beat for me.
With TWR basically being flat since August 2017 (after the takeover bid was cancelled, and after the bigly capital raise was announced), market clearly not to sure... I'd think with a solid result and guidance for double digit growth, TWR should climb back into the mid 80's

[boysy]

Divi yield could beat most expectations particularly if they surprise to the upside. Let’s hope they don’t have to use all that reinsurance they have available and the weather gods play nice for the remainder of the FY.

[Scrunch]

Nice jump over the last few days. After trading at 75c or less all of 2019 twr closed at 76c today. This took out all the listed sellers except someone hopeful at $1.40 I wonder if this is simply from speculation of a good result or news leakage around some event like a takeover?

[hogie]

Nice jump over the last few days. After trading at 75c or less all of 2019 twr closed at 76c today. This took out all the listed sellers except someone hopeful at $1.40 I wonder if this is simply from speculation of a good result or news leakage around some event like a takeover?

Perhaps the news that IAG has introduced Risk-Based pricing has given investors hope that the reputation of TWR might be improved? Or perhaps reading into the fact that TWR is turning around due to risk based pricing was one of the reasons IAG decided to follow suit ... good for investors nonetheless!

All speculation with no research of course ... that's how we roll :P

[Balance]

Nice jump over the last few days. After trading at 75c or less all of 2019 twr closed at 76c today. This took out all the listed sellers except someone hopeful at $1.40 I wonder if this is simply from speculation of a good result or news leakage around some event like a takeover?

Nice 'cents' move but %tage wise, really nothing to write home about.

If there's a takeover, someone is going to get done - buying up all shares available at market close is waving a huge red flag for the FMA to put on its ill-fitting dentures!

[Balance]

Perhaps the news that IAG has introduced Risk-Based pricing has given investors hope that the reputation of TWR might be improved? Or perhaps reading into the fact that TWR is turning around due to risk based pricing was one of the reasons IAG decided to follow suit ... good for investors nonetheless!

All speculation with no research of course ... that's how we roll :P

Looking at market depth this morning suggests to me that there is a large buy order out there and the 'informed' institutional market has all pulled their bids to 'encourage' the buyer to pay more.

[golden city]

It certainly looks like takeover

[boysy]

Not long to wait until HY result. Will be interesting to look at forward guidance and if those dives are due to recommence shortly ...

[boysy]

2019HY results out 10am today we will see if the co us turned a corner re profit and potentially reinstate a divi - SP at present would suggest neither of these outcomes are likely to occur. Could get a good bump to the upside if the announcement and outlook is favourable ....

https://www.nzx.com/announcements/334054

[winner69]

Insurance companies made zillions over the years by investing premiums in companies that were a major cause of our current ‘climate crisis’ — and now bemoan the impacts that have resulted from that crisis.

Some would say karma

Good luck today with the announcement....might be one of their lucky years

[boysy]

Low expectations seems par for the course with TWR time will tell

[winner69]

Low expectations seems par for the course with TWR time will tell

Looks like this is going to be one of their lucky years .....Tower earnings on fire.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/334777/300166.pdf


Still just an ordinary insurance company whose destiny is always in the lap of the gods

[trader_jackson]

sure looks to be one of those lucky years winner, if only STU was lucky as well... or maybe one helps create one's luck (or lack of luck)?
We'll see tomorrow if it is a 'lucky' year for AFT...

[boysy]

Yes looks good at a high leve would be good to see those chch claims settled once and for all. Decent uptick in FY forecast however they do note that result has a few caveats ... should run a bit on this news perhaps Bain will want a crack at this sooner rather than later ...

[winner69]

Yes looks good at a high leve would be good to see those chch claims settled once and for all. Decent uptick in FY forecast however they do note that result has a few caveats ... should run a bit on this news perhaps Bain will want a crack at this sooner rather than later ...

Bain still the big hope for shareholders eh ...one day the big pay day might come

[boysy]

I suspect if they can hit guidence this will rerate simply on as a dividend play if they can sort out chch and the tech upgrade

[trader_jackson]

Should move into mid 80's over the coming period they say

[boysy]

Have to wonder what the SP reaction would have been had they not announced an increase In guidance....

Moving in the right direction I guess ...

[trader_jackson]

Should move into mid 80's over the coming period they say

I, too, am surprised at 'the lack of action' yesterday... TWR seems to be tracking in the right direction, in every way (including a profit upgrade) and still the market had a pretty muted reaction.

[King1212]

Spent my weekend reading the result....recovery is well beyond expectation. They are planning to pay dividend next result...NPAT excess 26m...

true good to be true..the SP still at .80cents....

any thoughts? Plan to buy in..sound tempting...let say it pays dividend of .04 end of year...the sp will be more than $1??

Uplifted FY19 financial outlook• Strong business performance and benign weather environment in first half leads Tower to uplift itsone-off guidance for underlying NPAT, which is now expected to be in excess of $26m* in FY19• Key assumptions include: A $5m allowance for large events Loss ratios return to more normalised levels in second half A minor uplift in management expenses as transformation activity culminates• In respect to the 2019 financial year, and as previously advised, no dividend will be paid in the firsthalf of the financial year. The Board’s intention is to pay between 50% and 70% of second half 2019NPAT, where prudent to do so

[trader_jackson]

What I am most pleased about is not only are they growing the top line (and the bottom line obviously) but also admin costs remaining in control.

I brought in in late 2017 with the cap raise, and several months ago again at 78 cents (only to see it drop below 70 not that long after!) but happy to have topped up... I would still say at 80c it is pretty good value, and given the turnaround, and the fact someone might take it over as well, I'd like to think we' won't see (much) below 80c again.

[boysy]

Big issues I see ahead which could impact the NPAT stated - the implementation of the new computing system - if all goes to plan it should be a great result reducing spend going forward - if they get it wrong could turn out to be a disaster with additional cost overruns etc .... and winter coming in they have benefited from fairly benign weather in the 1st half let’s hope that remains the same through the course of winter - I take the markets reaction as once bitten twice shy regarding the outlook - if they achieve it this should rerate majorly in the months ahead - great entry point if they stick to guidance, no tech issues and no major natural disasters .....

[King1212]

Thanks guys..

[King1212]

big buy in lately.....some one must be accumulating ...?

[trader_jackson]

I am surprised at the lack of share price positivity despite results being pretty positive (and outlook positive as well)... I thought we'd easily be in the 80's now, I reckon we'll see a 4 ish cent dividend arriving in less than 5 months time (not a bad yield at all)

[hogie]

I am surprised at the lack of share price positivity despite results being pretty positive (and outlook positive as well)... I thought we'd easily be in the 80's now, I reckon we'll see a 4 ish cent dividend arriving in less than 5 months time (not a bad yield at all)

Here's hoping :) I'm a believer in their strategy at the moment ...

[Marilyn Munroe]

I bereave there is an opportunity in the insurance market going begging.

Most insurers are spooked by risks in Christchurch and are charging very high premiums for the risks they do underwrite.

Most of the buildings in Christchurch of earthquake-vulnerable construction have gone. An underwriter with a rigorous selection process which avoided hillside risks, liquefaction zones and buildings with legacy earthquake issues but selected for good construction would gain heaps of premium income.

What about the big one when the Alpine Fault gives way you ask? The fault is some distance away and remember the force of an earthquake diminishes over distance on a logarithmic scale. One of the reasons the Christchurch earthquake was so destructive was a large part of the movement was up and down rather than the horizontal side to side shaking expected.

Something for a properly resourced insurance company with a reinsurance syndicate behind then to have a go at.

Boop boop de do
Marilyn

[King1212]

A lot of accumulation lately...

[aquaman]

A lot of accumulation lately...

With this extended run of mild weather this year, it has to be good for insurance companies balance sheet.

Working with one of the large companies (not tower) the last 12 months has seen a huge reduction in domestic weather related claims compared to previous period.

That and higher excesses as customers increase them to save premiums, means less claims as minor claims become uneconomical to claim for.

Of course this could all change with a run of bad weather events!

[King1212]

Yes true...higher access to claim so reduce the claims. Well...the way of insurance business is different now...the charge more for higher risk..and also there is EQC levies to cover the cost in case huge natural disasters strike

[Marilyn Munroe]

IAG in Aoteroa has had a boomer 6 months;

https://www.newsroom.co.nz/2019/02/07/433061/iags-nz-premium-growth-and-margins-outpace-australia#

I thought the market would have gone long on TWR using the "rising tide lifts all boats" theory.

Seems not.

Boop boop de do
Marilyn

[trader_jackson]

Suncorp had a boomer day the year before it... NZ General Insurance going fantastically and outlook for both (of their NZ Operations) reasonably positive as well... but yes, it is like people just simply don't believe it can be that good for Tower either... and still another 3 months before we get close to finding out.

[King1212]

Hold pretty dam good yesterday....buyers are starting to buy in..expecting great result with at least 4c dividend...

[Independent Observer AUNZ]

EOFY approaches - the weather overall seems to have held off fairly well which should support some extra bump to profit. Not sure what the Pacific is doing though, but I'm not aware of any big hits. What are expectations for divvies?

[trader_jackson]

I am surprised at the lack of share price positivity despite results being pretty positive (and outlook positive as well)... I thought we'd easily be in the 80's now, I reckon we'll see a 4 ish cent dividend arriving in less than 5 months time (not a bad yield at all)

Nobody seems to care that TWR will likely smash it out the park this FY + provide a nice net yield of about 5.4% (pretty high in this environment)... in fact share price is actually down 1.3% on this time last year (so NZX's website says)
Intriguing.

[Independent Observer AUNZ]

Nobody seems to care that TWR will likely smash it out the park this FY + provide a nice net yield of about 5.4% (pretty high in this environment)... in fact share price is actually down 1.3% on this time last year (so NZX's website says)
Intriguing.
There's still plenty of uncertainty there - the regulators are doing funny things, Tower have a big system replacement that's midstream, and even though the Canterbury tail is getting small the EQC still seems to find ways to create uncertainty for the private insurers. They also have Bain sitting there at 19.9% - who knows what their strategy is and that's possibly causing some gun shyness from the bigger guys to adjust their holdings. Overall it is a really static trade-wise; I think there may just be lots of long-term holders who are waiting for the last few bad years to even out and the non-holders only see the potential speed humps I mentioned above.

[Scrunch]

Hold pretty dam good yesterday....buyers are starting to buy in..expecting great result with at least 4c dividend...

If they are going to distribute circa $10m aka 4c div, I'd prefer if some of this was via a share buyback because with no imputation credits at present, one third of the div goes directly in RWT for those on a 33% tax rate.

It's a little better for companies as only 28% is lost, but still not great. I'm guessing this is one of several reasons behind the low div rates for most retirement companies as they also have little or no imputation credits (but for different reasons)

[trader_jackson]

https://www.nzx.com/announcements/341433

Interesting announcement

[winner69]

https://www.nzx.com/announcements/341433

Interesting announcement

Some more cheap shares for you t_j

You must live all these Capital raises you participate in.

[winner69]

I would have thought that many of Youi customers were previous dissatisfied Tower ones

But Tower says this is growth so it must be good

Disc. Don’t know much about Youi but their advertising seems to suggest cheap(er) insurance

[trader_jackson]

I would have thought that many of Youi customers were previous dissatisfied Tower ones

But Tower says this is growth so it must be good

Disc. Don’t know much about Youi but their advertising seems to suggest cheap(er) insurance

No, they are all the dissatisfied AMI customers winner

No dividend this year will annoy some, but great growth in profits and GWP... and rock solid balance sheet.

[Vaygor1]

https://www.nzx.com/announcements/341433

Interesting announcement

Key takeouts:

Tower to buy Youi for $13M
No dividend as a result
Capital Raise of $47.2M to occur as part of the arrangement
Issue price of NZ$0.56 per share
Entitled to 1 share for every 4 shares held
Increase of Full Year Underlying NPAT guidance from $26M+ to $28M
Tower to pursue dispute with EQC if needed (likely)
Plenty of solvency up its sleeve
Solid growth continues, claims ratio favourable


Disc: Holding

[King1212]

Insurance companies are all getting smarter..with high excess fees and premium kept raising every year...all kiwis must have insurance..it is on their DNA

[Schrodinger]

Why would Rand Merchant be selling their NZ operations? Could be poor asset quality with limited margins.

[trader_jackson]

Why would Rand Merchant be selling their NZ operations? Could be poor asset quality with limited margins.

They probably haven't had the growth they thought so are moving out of NZ... been in the country 5 years and, despite being very aggressive (too aggressive some say) have only managed $26m GWP... should compliment Tower very well, lots of synergies etc.

[Schrodinger]

According to their statements they lost market share $26M 2018 to $24.5M in 2019 (premium).

[Sideshow Bob]

Why would Rand Merchant be selling their NZ operations? Could be poor asset quality with limited margins.

My only experience with Youi was a quote which took at least half an hour of questions, and turned out significantly more expensive than elsewhere. Then was contacted a number of times afterwards. Never again.....

[Dassets]

The capital raise has virtually nothing to do with the acquisition. The EQC receivable is now in question and is assumed to be subject to litigation. The capital raise is to shore up solvency
Ratio.

[hogie]

My only experience with Youi was a quote which took at least half an hour of questions, and turned out significantly more expensive than elsewhere. Then was contacted a number of times afterwards. Never again.....

Exactly the same experience here ... what a waste of my life.

Tower however is a much simpler process and much better pricing (unless you're in Christchurch / Wellington).

I might pick up some more of these at this price :)

[Independent Observer AUNZ]

The capital raise has virtually nothing to do with the acquisition. The EQC receivable is now in question and is assumed to be subject to litigation. The capital raise is to shore up solvency
Ratio.

Correct - that's the really interesting thing here. The RBNZ has obviously grown a pair and said "we won't approve the Youi deal unless you change how you look at the EQC disputed receivable asset from a capital perspective." Clever and probably very frustrating for the Tower Board. This could be taken one of two ways for shareholders; the likelihood for collection of the asset is perceived to have reduced (possible but not likely), and/but, the future collection of this asset from the EQC in whatever form (whether its 1% or 100%+ of the original assumption) will result in a substantial profit and dividend for shareholders to enjoy down the track if and when it materialises.

[Independent Observer AUNZ]

No, they are all the dissatisfied AMI customers winner

No dividend this year will annoy some, but great growth in profits and GWP... and rock solid balance sheet.

Read again re: balance sheet and the purpose of the capital raise re: EQC receivable.

You're probably not wrong re: Youi's market share. I'd say they compete most closely with the TradeMe Insurance brand (administered by Tower) for the low-cost offering in the market, be interesting to see what product Tower move the Youi policyholders on to at renewal assuming the deal goes through.

[Scrunch]

I guess on the upside, if (when?) the ACC receivable is received it won't be needed for regulatory capital requirements. It could therefore be distributed back to shareholders, potentially through a share buyback aka what Fletcher are doing now following their earlier capital raise. Alternatively strong organic growth won't need additional capital for quite a while.

[Poet]

https://www.newsroom.co.nz/@business/2019/09/25/827857/eqc-sets-aside-millions-for-insurer-reimbursement

[trader_jackson]

https://www.newsroom.co.nz/@business/2019/09/25/827857/eqc-sets-aside-millions-for-insurer-reimbursement

Sounds like Tower will get most (if not all) of what they are owed and EQC don't want to go into battle over it (am I reading that right?)... meaning the extra capital being raised is almost entirely not needed... but will mean Tower is rock solid.

Mr Market clearly not impressed as the share price is down over 10 cents since monday... another profit upgrade, increasing GWP, technology upgrade programme roughly on track (no big blowout... yet) and a small yet nice growth opportunity the purchase of the Youi portfolio provides clearly not enough to please it - and the prospect of another year without dividends is certainly not helping.

[King1212]

Well TJ..u never know if they decided to declare dividend as u mentioned the capital raise not necessary which will make tower strong. So...if all goes well ..who know they will declare dividend to return the extra capital....

[Vaygor1]

I am astonished the price dropped following the Youi acquisition announcement and lift in guidance. How narrow minded can the market be? It's like "We won't get a circa 5c dividend so lets beat the price down by at least that much"... when in fact earnings forecast went up and retained earnings are far more beneficial (due to taxation advantage) to all shareholders in the long run than a dividend payout.

In answer to the question, "Did TWR's SP, prior to the announcement, already have this priced in?", the answer, given the complete lack of market recognition since the H1 announcement, must be a resounding "No".

On top of this, prior to the announcement, SP of circa 77c per share meant the market valued 5 TWR shares at 5 x 77c = $3.85.
Post announcement, prior to the record date (all things being equal), 5 shares can be purchased for (4 x 77c) + (1 x 56c) = $3.64
And the price drops????
So today, at market close of 68c, those 5 shares can be bought for (4 x 68c) + (1x56c) = $3.28 = 15% cheaper then $3.85 pre a good-news announcement.

Have I got something completely wrong here?

4 more days left in TWR's financial year to seal it as a benign one re earthquake and weather-related claimable events.

[Scrunch]

From a balance sheet view the receivable is about 15c/share. If it's receipt is now significantly delayed and possibly in doubt, the assets underpinning Tower are less.

I however suspect more of the price drop is script supply/demand factors around a rights issue.

There's also a potential question mark around whether the acquisition is value adding or a tack on to try and make another capital raise justifiable.

[trader_jackson]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/341608/308538.pdf

Clearly the market thought purchasing Youi was somehow detrimental to Tower... glad they have come out this morning saying quite the opposite... and confirming what I thought (small, but solid and good option for growth).

[winner69]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/341608/308538.pdf

Clearly the market thought purchasing Youi was somehow detrimental to Tower... glad they have come out this morning saying quite the opposite... and confirming what I thought (small, but solid and good option for growth).

Why didn’t they do this in the first place mate

Still a big guess though isn’t it (sorry it’s an internal view of financial impacts)

Mind you their guesses in the past haven’t been too flash ...have they?

[trader_jackson]

Why didn’t they do this in the first place mate

Still a big guess though isn’t it (sorry it’s an internal view of financial impacts)

Mind you their guesses in the past haven’t been too flash ...have they?

Yea but winner... this time is different :t_up:

[winner69]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/341608/308538.pdf

Clearly the market thought purchasing Youi was somehow detrimental to Tower... glad they have come out this morning saying quite the opposite... and confirming what I thought (small, but solid and good option for growth).

Market not believing the bull **** yet t_j

[trader_jackson]

Market not believing the bull **** yet t_j

No, not believing the facts either (if you can count a profit upgrade as a fact)

[caveman]

How can I trade Tower's rights? The NZX posted a notice that they can only be traded on X-stream? I can't seem to trade on the Direct Broking platform. Thanks.

[Independent Observer AUNZ]

How can I trade Tower's rights? The NZX posted a notice that they can only be traded on X-stream? I can't seem to trade on the Direct Broking platform. Thanks.
Keen to see this also - I'm a Direct Broking user also.

[Independent Observer AUNZ]

Apparently issues resolved... but doesn't seem to be trading on Direct Broking yet - and I'm not willing to guinea pig the first trade!

[hogie]

Apparently issues resolved... but doesn't seem to be trading on Direct Broking yet - and I'm not willing to guinea pig the first trade!

What's the dealio for this? Purchase rights for 7c each then purchase the shares at 56c once the rights offer is ended?

[tim23]

What's the dealio for this? Purchase rights for 7c each then purchase the shares at 56c once the rights offer is ended?

That looks like the highest bid there are no sellers so you might need to offer say 10-11c to get a bite.

[hogie]

That looks like the highest bid there are no sellers so you might need to offer say 10-11c to get a bite.

11c will be basically buying at the current share price ... but double brokerage fee ... oh well lets wait and see ...

[Independent Observer AUNZ]

What's the dealio for this? Purchase rights for 7c each then purchase the shares at 56c once the rights offer is ended?

Yes. They are trading around 9c at the moment. Their value is only the ability to get the "rest" of the share for 56c when the offer ends. At 9c, there is effectively a 1c per share saving on buying the shares as trading now (66c).


11c will be basically buying at the current share price ... but double brokerage fee ... oh well lets wait and see ...

I don't think double brokerage - exercising the right shouldn't attract a brokerage fee I wouldn't think?

[theace]

Where/How do you apply if you want to take up the rights? Haven't rec'd any comms on it.

[theace]

Where/How do you apply if you want to take up the rights? Haven't rec'd any comms on it.

And just like that, I receive an email!

[trader_jackson]

The web portal opened around 12pm today, I have taken up my full entitlement (and transferred money) a few moments ago.

I am still surprised the shares trading this cheap (sub 70 cents)

[Snow Leopard]

Considering dip my paw into the waters again:
First time I made lots of money;
Second time I lost some;
Third time ???.

[Independent Observer AUNZ]

Considering dip my paw into the waters again:
First time I made lots of money;
Second time I lost some;
Third time ???.

Third time's a charm.

[King1212]

When the last day to pay TJ?

[Vaygor1]

When the last day to pay TJ?

Straight from my email confirmation....

"IMPORTANT:
Please check with your bank to ensure the payment is made in sufficient time for it to be received in Computershare’s bank account in cleared funds by 7:00pm (New Zealand time) on 15 October 2019.

If your payment is received for less than the amount paid due to bank fees being deducted from your payment, you will not receive all of the New Shares you have applied for. The number of New Shares allotted to you will be calculated based on the payment received. Any payment that is received and unable to be identified before the closing date, will be refunded without interest.

The registrar will endeavour to use all methods available to identify any such payments prior to actioning the refund. If you want to utilise this service and have any questions, please contact Computershare at tower@computershare.co.nz or 0800 222 065."

[Independent Observer AUNZ]

Just a reminder that rights trading is about to clsoe this afternoon.

[Leemsip]

huge tower fan. Currently 1/3 of my (not very big) portfolio and looking for $1 share price this year.

Looking to talk my book here and bring the forum on board.

I have done a quick and dirty comparison of Tower to IAG (big Aussie owned insurer) and present metrics below. The format sucks sorry.



Tower
IAG



Rough Solvency Ratio with Youi additions + cap raise
163%
163%
spooky


Rough Solvency assuming no EQC payout of $50m
119%

still not awful.








GWP (millions)
170
12,000



Net profit (millions)
28
1,076



Net profit per $GWP
0.16
0.09
Tower massively more profitable per $ of GWP basis. Need to confirm this.


Growth YoY
8.90%
3.10%









PE
9.7
20.91



Market cap (millions)
287
17,610




So tower is actually pretty well capitalised now, assuming there is a net $50m return on the EQC receivable, it will be broadly in line with IAG. If no return at all from EQC (deemed unlikely) then it will still be significantly over the RBNZ minimum requirements, including the additional requirements for the Youi premiums.

Tower makes vastly more net profit per $ of written premium than IAG (almost double by my calcs). Interested if someone can show this isnt the case. I simply took net profit / GWP as per the two reports below. Hope I havent made a huge mistake here.
https://www.iag.com.au/sites/default/files/Documents/Results%20%26%20reports/IAG-announces-FY19-Results.pdf
https://www.tower.co.nz/investor-centre/reports 2019 half year report


Tower growing extremely strongly and insurance is somewhat recession proof?.

Tower on half the PE

Bain capital hold 20% of Tower and may move at some point.

Whats not to like?

[Balance]

huge tower fan. Currently 1/3 of my (not very big) portfolio and looking for $1 share price this year.

Looking to talk my book here and bring the forum on board.

Tower growing extremely strongly and insurance is somewhat recession proof?.

Tower on half the PE

Bain capital hold 20% of Tower and may move at some point.

Whats not to like?

You convinced me. :)

I am in for more. :t_up:

[Jaa]

Congratulations to Tower on running a fair, rapid and successful capital raising for all shareholders. They have shown others (cough EBOS, Turners) how it should be done. Whole process from start to finish took less than a month, so lets not have speed used as an excuse to screw small shareholders via placements or SPPs again.

On a side note, anyone care to explain how Westpac increased their stake (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/343046/310298.pdf) from 5.44% to 6.5% paying only 19.5 cents a share?!?

Transaction Type: On-market sales and purchases
Period: 21/9/2017 to 21/10/2019
Shares: 12,741,133
Consideration: $2,484,516.88

Average price per share: 2,484,516.88 / 12,741,133 = 19.5 cents a share

Share price range in this period was between 66 and 70 cents and the rights price was 56 cents.

[winner69]

Congratulations to Tower on running a fair, rapid and successful capital raising for all shareholders. They have shown others (cough EBOS, Turners) how it should be done. Whole process from start to finish took less than a month, so lets not have speed used as an excuse to screw small shareholders via placements or SPPs again.

On a side note, anyone care to explain how Westpac increased their stake (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/343046/310298.pdf) from 5.44% to 6.5% paying only 19.5 cents a share?!?

Transaction Type: On-market sales and purchases
Period: 21/9/2017 to 21/10/2019
Shares: 12,741,133
Consideration: $2,484,516.88

Average price per share: 2,484,516.88 / 12,741,133 = 19.5 cents a share

Share price range in this period was between 66 and 70 cents and the rights price was 56 cents.

That’s the totals for TWO plus of transactions.

ASX disclosure lists all the trades. Sold quite a few at high prices

[Jaa]

That’s the totals for TWO plus of transactions.

ASX disclosure lists all the trades. Sold quite a few at high prices

Thanks Winner, didn't realise Tower was also listed on the ASX. Had assumed there was offsetting trades hidden in the numbers, some nice trading by Westpac there!

There is also an additional disclosure from Westpac on the ASX that they have increased their stake to 8.13% but it is not on the NZX as of posting.

Why do we tolerate such crap disclosure in NZ? Should copy the ASX requirements for dual listed shares and cut down on the double work.

[Jaa]

Good to see all Tower directors taking up their rights allocations, though surprising how few they own (except Michael Stiassny).

Director Marcus Nagel took up his rights to take his grand total to 62 shares! :D

[trader_jackson]

Congratulations to Tower on running a fair, rapid and successful capital raising for all shareholders. They have shown others (cough EBOS, Turners) how it should be done. Whole process from start to finish took less than a month, so lets not have speed used as an excuse to screw small shareholders via placements or SPPs again.

On a side note, anyone care to explain how Westpac increased their stake (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/343046/310298.pdf) from 5.44% to 6.5% paying only 19.5 cents a share?!?

Transaction Type: On-market sales and purchases
Period: 21/9/2017 to 21/10/2019
Shares: 12,741,133
Consideration: $2,484,516.88

Average price per share: 2,484,516.88 / 12,741,133 = 19.5 cents a share

Share price range in this period was between 66 and 70 cents and the rights price was 56 cents.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/343284/310668.pdf

Interesting... they now hold 8% after the rights issue

[macduffy]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/343284/310668.pdf

Interesting... they now hold 8% after the rights issue

More accurately, I think, to say that various Westpac nominee companies and unit trusts managed by Westpac subsidiary BT Fund Management, now hold 8% after the rights issue.

[Independent Observer AUNZ]

Good to see all Tower directors taking up their rights allocations, though surprising how few they own (except Michael Stiassny).

Director Marcus Nagel took up his rights to take his grand total to 62 shares! :D

Constitutional requirement for director to own shares... and he is a representative for Bain who need to be careful with their 19.99% shareholding not to inadvertently breach the takeovers requirements.

[Jaa]

Constitutional requirement for director to own shares... and he is a representative for Bain who need to be careful with their 19.99% shareholding not to inadvertently breach the takeovers requirements.

Thanks for that, didn't realise Bain had a board rep.

Frustrating to see Westpac et al, Salt Funds Management and other high rollers helping themselves to loads of extra 56cent shares. Why wasn't that option presented first to long suffering existing shareholders via a pro-rata over-subscription facility?

Until the NZX and NZ directors understand that a market needs to be fair and equitable to attract broad based support I fear the NZX and companies listed on it will continue to struggle.

[Independent Observer AUNZ]

Thanks for that, didn't realise Bain had a board rep.

Frustrating to see Westpac et al, Salt Funds Management and other high rollers helping themselves to loads of extra 56cent shares. Why wasn't that option presented first to long suffering existing shareholders via a pro-rata over-subscription facility?

Until the NZX and NZ directors understand that a market needs to be fair and equitable to attract broad based support I fear the NZX and companies listed on it will continue to struggle.

Yes I was disappointed too - others have offered that e.g. I think Steel & Tube did and it worked well for shareholders.

[boysy]

Decent volume of late heading into the AGM

[Independent Observer AUNZ]

Decent volume of late heading into the AGM

??? The Tower ASM isn't until Feb or March most years.

Maybe you mean while we await Full Year Results announcement which is due in November sometime, true - but there won't be many surprises with the disclosure that occurred re: the capital raise and the delay of any dividend accordingly.

Regardless, the volume doesn't seem substantially different to the ordinary trend from what I'm looking at - where are you seeing additional volume (apart from the capital raise?)

[winner69]

In line with expectations

Not too bullish about F20 though

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/344557/312189.pdf

[trader_jackson]

In line with expectations

Not too bullish about F20 though

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TWR/344557/312189.pdf

I reckon tower are doing a heartland... putting expectations low but we all know they are going to smash it (although the share price certainly doesn't believe either of them these days)

Remember this time last year in FY18 results announcement they said underlying NPAT in FY19 is in excess of $22m... was actually $27.4m.
So when they say $27 - $30m, we know its going to be at least $32m (and hopefully we get a big juicy dividend as well)

[Independent Observer AUNZ]

I reckon tower are doing a heartland... putting expectations low but we all know they are going to smash it (although the share price certainly doesn't believe either of them these days)

Remember this time last year in FY18 results announcement they said underlying NPAT in FY19 is in excess of $22m... was actually $27.4m.
So when they say $27 - $30m, we know its going to be at least $32m (and hopefully we get a big juicy dividend as well)

If you look at the details, it is all about the weather and they 'assume' that everything up to their reinsurance program will be spent on moderate catastrophe events. If the weather is good for 12 months and no catastrophe events, there's a solid circa 10m bump available there. But given where the climate seems to be heading at the moment - I wouldn't be expecting to bank it every year and that's why they don't set expectations on the basis of having it available.