while still the directors fault, what he doesn't point out is that is that it was GPG who were pushing for the break-up as part of their liquidation.
It's now a shell of its former self and one does have to wonder what it's future is.
Printable View
yea GPG pushed the breakup thru
One of the best div yields available now i believe, but one still needs to know if they are going to grow the general insurance business or are they are just going to what to be taken over at some time
yea GPG pushed the breakup thru
One of the best div yields available now i believe, but one still needs to know if they are going to grow the general insurance business or are they are just going to what to be taken over at some time
And that was Brian Gaynor's point. Directors have an obligation to act in the best interests of all its shareholders - and not be pushed around by whoever happens to have the biggest shareholding. And shareholders need to take a more active interest in their company - acting as owners and not merely passive investors. The bottom line is that it will be our own fault if we get short changed on this - and other occasions.
Snr. Macduffy
I am to agree. Standing up is important toward directors.
nib seems to have done a much better job with there purchase of towers health insurance business, turned it around from 4 yrs of customer losses already
Probably, brucey.
NZ is only a small part of Nib's business. As long as it can afford to build market share without increasing premiums or compromising service I'll be happy - as a policy holder.
:mellow:
Any thoughts from anyone on whether these are a good by at current price of around $1.59 or not?
If tower maintains it div todays prices represent a nice div, of more interest to me is for them to demonstrate they are serious about growing the general insurance business.
I see if IAG is not allowed to take over lumley ( lets hope so we dont want another duopoly in nz developing do we ) there maybe an opportunity for someone else to buy tower? would substanially boost there general insurance market share.
Article of interest http://www.stuff.co.nz/business/indu...ers-View-Tower
discl. not holding but watching
Interesting article in the Sunday Star Times this weekend.
http://www.stuff.co.nz/business/opin...-in-good-state
Discl : Hold a small amount
I read it and makes it sound like a great buy at current price with Premiums going up etc.. Not familiar at all with history here , legacies , management , debt etc. So whats the catch? cheers jt
what you think of towers new app
http://www.stuff.co.nz/business/9945...ard-driver-app
I dont know if i would like them knowing everywhere i went
might get annoucement this week on IAG takeover, lets hope they turn it down but if they dont guess we can hope that they have to divest some parts... hopefully to tower
iag takeover announcement tomorrow, be interesting to see how much foresight is in the decision
surprisingly IAG appears to have been cleared unconditionally to buy Lumley, wasn't expecting that!!
http://www.comcom.govt.nz/the-commis...-to-buy-lumley
http://www.nbr.co.nz/article/nz-regu...ness-bd-155766
oh well more domination by australian firms
results tomorrow
Interesting they are choosing now to tidy up the register. Will make a takeover a bit easier.
Quote:
TOWER has just over 20,000 shareholders with less than a minimum holding in TOWER. They represent 41.09% of the company’s total share register and own 2.5 million shares, approximately 1.43% of TOWER’s current issued share capital.
Another $36m (well $34 initially 2 more later) in the pocket. Feels like not a bad sale price for TWR.
Share price recovery is into its 3rd month now, its been slow but fairly steady, sell side is looking a bit skinny at the moment too.
I feel that all the good news is out now so to speak. Would like to see the stock drift lower before moving in.
Good to see the NZ insurance market getting some serious competition, with a few innovative policies like claiming for a hole in one or a baby!
Insurer Youi launches in NZ
Wouldn't be surprised to see Youi make a bid for Tower to get some scale.
I'm surprised TWR doesn't get a little more time in the spotlight here. Over the last three months they've gone about their business and have put on 30 cents from around 1.66 to 1.96. I've heard that since they stripped backed the business they're in pretty good shape and are worth at least $2.00 plus.
that's because people on here are more interested in some speculative growth stock. Totally agree, TWR has been on my radar, was very keen. In my view worth $2.20. Problem is its a short term stock, once it goes up you have to sell.. there is no long term attraction to the stock for me. Hence I decided to go with TME, which I think can be held for many years.
I hold twr wish I had more topped up at 1.60 odd so pretty happy and looking forward to there capital initiatives at full yr results.
Is there some takeover speculation whirling around or the big move Friday because of the capital requirement change?
more consolidation in the sector occurring in aus, wonder how long before someone gets interested
ipredict $70m capital return (40cps) announcement in November - being reduced capital requirements granted by the Earthquake Commission (30m), proceeds of sale of life assurance business (35m), and some loose change.
Share price now is $2. Subtract 40c, gives a share price of $1.6 and a div yield (bet they can at least sustain the current div) of 7.8%, and decent prospects.
Scope for the price to go up.
breakout multi year range 2.40 maybe
Yes its been a good run over the last 6 months. Fed on by a flow of positive news along the way. New CEO and Chairman and exit of GPG have all been big positives in my view.
Nice looking announcement this morning, Div up 2c from 6c to 8c. On market buyback in 1st quarter 2015, talk of expansion in the pacific.
buyback would take shares on issuee down from 175m to 158m odd at $2 more if the price is lower, increase earnings per share and if they acheive a result of npat the same or better than this result higher dividends this time next yr so at todays price you could get maybe 15-16cps div next yr for a yield of nearly 8%
the boats a leaving
Yes was wondering when this was going to happen. I was a little surprised at the muted response to date. Usually an on market share buy back and a dividend increase result in a bit more of a response from Mr Market.
The jump to 505 seems to have got the attention of a few sellers now, it was looking a bit thin on the sell side for a while there!
looks like new highs this week
2.15 close confirms the breakout
Also just saw morningstar has downgraded from 'Hold' to 'Reduce' due to the price change, valuation at $1.90.....
been 2 very big transactions this week could explain the price surge, insto buying up for takeover lol
Another good couple of weeks for TWR. Closing at 2.32 yesterday. $1.50 seems so long ago now...
Still got the 8c Div record date to come next week, then the AGM mid Feb where we will hopefully hear some more (or some actual detail) of what they have planned with Trade Me.
Then of course my personal favorite.. the on market buyback. They said it would start 1st quarter which i assumed meant after the dividend was paid and before the AGM to ensure a bright mood.
heading to breakout price target
Anyone want to guess when the on market buy back will start?
I'll admit my pick was after the record date for the dividend, but that passed on the 20th and so far nothing....
Nothing we didn't know in the AGM presentations. Not a lot of detail. Lots of mentions of the 90%-100% dividend payout and they buy back taking place in Q1.
What do you reckon...was the big trade at 10:22 the start of the buy back?
After the 26th May finally for the buy back!
Chch claims seem to be ticking along slowly and the extra re-insurance can't be a bad thing.
Hmm Trading Halt...wonder why, takeover offer maybe?
Reviewing their Chch earthquake provisions, doesn't say which way, but presumably downwards which would free up some more cash !
Perhaps, it seems to be on a downwards trend just at the moment, i reckon there are the following pressures with Down currently winning.
Down - The Earthquake Provision increase
Up - Increase in profit guidance
Up - Pending on market buy back
My gut feeling is that the downward pressure will dissipate before the 26th May results announcement and then the on market buy back will provide some support. As always the trick is to pick the bottom.
But DYOR !!
Yes it did, from memory it bounced off of 2.38 3 times over a few months. Unfortunately i have just sat through this one, i thought the buy back would provide more support that it did so stayed in.
I noticed that Salt has used the recent drop to top up another 5m shares (not sure if 'top up' is the right term for 5m shares)
http://www.interest.co.nz/insurance/...t-christchurch
an interesting read
Yes it is, im a bit of a fan of stories with actual numbers in them, thou this one feelds a a little sensationalist on the intrepreation. I can't speak for IAG or Suncorp as i haven't done any research on them, but it does gloss over the fact that the $30m he is talking about Tower being up for is only if an event uses up all of Towers existing RI first.
It also glosses over the fact Tower has substantial reserves in excess of the RBNZ minimums that could be used to pay for that $30m, and as we have seen from the Canterbury Earthquakes, the claims are not settled in one year, so the $30m would be spread over a period of years.
The core facts are correct in that if there was another Canterbury Earthquakes sized event, Tower would possibly be up for $30m, but they can afford that.
wouldn't surprise me to see tower report a underlying profit but a loss after they account for Christchurch provisions, of course the longer it drags on the higher the probability even these provision increases will not be enough lucky for them they only have 5% to go unlike iag with something like 25%, dragging one s heels has proved costly for insurers
I reckon this was a good result, increased dividend too but no imputation credits yet, they must be in play anytime?
Buy back scheduled to start next Wednesday, feels like it has been a long time coming !
Last Friday's announcement of a partnership, of sorts, between TWR and TradeMe seems to have been greeted with a yawn. No significance - or an unknown quantity?
:sleep:
Unknown quantity i think, Trade Me have been in the Life broking business for years (Life Direct) but this is their first foray into the General Insurance Market.
They obviously have a massive user base to market to and the web site looks fairly slick so i can't see it being a bad thing for Tower, but how much of a good thing it could be is essentially up to Trade me, as long as Trade me continue to push it to their users it will succeed.
Looks likely that the buy-back of their own shares has finished. Hence the 5% drop this week?
Like almost all companies they seem to have managed to buy their own shares back way above the price they were probably worth - in this case the price has constantly fallen throughout the buy-back which started right at the top of their 5 year price (First trade announcement - Average consideration per security acquired NZ$2.2628 - now NZ$1.92).
I don't know whether they've borrowed funds to use for the buy-back or not? Anyway very rare that shareholders get value for money with buy-backs (Just look at Glencore recently!).
i think you might be reading a bit much into this..
The buy back is funded from cash, TWR has no debt.
By my count they have only spend 1/3 of the $34m they have set aside for the buyback.
I think the buy back has paused as TWR's year end is 30 September, it would seem to be a big coincidence that the last buyback just happened to be on the last day of their financial year ;-)
However i can't argue with your point about the buyback holding up the share price, i think you are correct the price has dropped fairly quickly with the pause in the buy back. I do expect the buyback to re-start once the result is announced towards the end of November.
Agree - I make it 3.8m bought back; 13.9m to go, approx.
2016 estimated EPS is 25 cps, using post-buyback shares-on-issue of 155m.
Past 7 years mid-point PE is approx 10.2, giving a share value of around 2.55
In 2014 they made and paid out 14.5cps.
This year 20.1c and next year 25c, as above, is my guess.
Given a growth factor of 12%, 2016 gross dividend yield of up to 13%, and present (apparent) depressed share price, TWR looks like a good long term bet (second best of the shares I track).
Market certainly not too excited about TWR though.
Yes agreed, the yield is starting to look attractive again, i got out a couple of months back once it became apparent the buy back was holding the price up. Buy i wasn't expecting it to head back into the $1.80s
TWR management has done a good job over the last couple of years, profit and dividends are increasing and the company looks to have a plan now as well after wandering aimlessly for a number of years when GPG were at the wheel.
The only downside i can see is the impact of the Wanganui floods, they mentioned $2m at the time i think.
On the positive there is the profit announcement + Div due end of Nov and then presumably the buyback will start up again. Longer term there is also still some additional money tied up due to the Reserve Bank requirements around the Christchurch earthquakes.
Of course you're all quite correct...I made a quick assumption based on no buying for a week :o(
According to Morningstar 'Tower continues to make progress on its share buyback announced in May. To date, 5.5 million shares of the 17.6 million program have been bought back..... Capital management remains a strong focus, and the prospect of more capital management initiatives remains. The balance sheet is strong, with no net debt and with regulatory capital well above minimum requirements. We had already accounted for a buyback, so our earnings forecasts are largely unchanged. Tower remains fairly valued, trading in line with our unchanged NZD 2.00 fair value estimate.
No worries, asking questions and offering opinions is what this forum is for isn't it ! :-)
Saw this in the NZ Herald this morning, it could explain a bit of the weakness too, TWR has has a fair bit of risk in the Pacific.
http://www.nzherald.co.nz/nz/news/ar...ectid=11529239
back in this too now, looking forward to results
looking good 2 weeks to results and some nice divs
inverted head an shoulder pattern forming with neckline at 2.10 target 2.30 if breaks dyor
When do you think they will pay inputted dividends again
One reason why investing in insurance companies is hit and miss
https://www.nzx.com/companies/TWR/announcements/273768
Financials are essentially a 'big guess'
Don't insurance companies essentially make most of their money from investing premiums -- while hoping to make a few extra bucks on the claims side if they get underwriting right
I dont think the increase in provisions for claim is a surprise, iag and others have had to increase as well - need to look past this at the underlying earnings of 28m which after buyback as well approx eps 18 div 17-18c div yield 9% pe just over 11 claims nearly complete although hard ones to go with a element of risk 70m of capital in excess still above current buyback. probably be panic sellers around to supply the buyers who couldnt get any under 2.1 but think it be short lived
I'm not sure that you can have much confidence looking past underwriting losses to an "underlying earnings" number. Underwriting isn't an extraordinary, non-recurring item. It's what insurance companies do!
I will now admit to being back on the share register of Tower after a few years away.
Wish I understood why I buy these things. :confused:
Best Wishes
Paper Tiger
What's not to like...has been beaten down in price...returns good yield...and lastly but not leastly.... insurance is something that everyone needs, uses and understands. Also it was up at 2.30 March 2015. I understand why you would buy..even if you don't? Supposedly minimal impact from Fiji so could be a nice SP increase in your future. if I had any spare cash I would have bought myself but have to wait for April dividends:(