Originally Posted by
JAX
"The company's reinsurance programme provides more than $700 million of cover for these types of events once the excess of $10 million has been passed, which Tower says leaves the maximum possible impact of $7.2 million after tax. "
That is of course assuming it doesn't go past $700million. Which seems very unlikely but with these things, you dont really know - the CHCH overall costs were $45b and Key was saying they could get up there close to that. It also will inevitably mean Towers reinsurance costs will rise again not to mention all the additional costs to serve which will surely also hit the bottom line, just further down the track.
As an aside 700m also seems a small amount if for example a proper one ever did hit the Wellington CBD. That would be wiped out pretty quick as would this company I would imagine. I have my home insured with Tower, when it comes up, I think I might look at moving it to safer ground/backing (assuming all else is equal)