TWR - Tower Insurance.

[Antipodean]

https://www.newstalkzb.co.nz/news/na...uined-by-rain/

Losses could be as high as $50m and more if the rain does not stop.

This covered by insurance?

Depends on the wording on the insurance contract.

Typically, replacement of contents style policies cover 'unforeseen events.' Is heavy rain really fitting into this category?
More business interruption style policies also rely on an underlying event that triggers it (eg EQ closes CBD).


I note in less than 2 months (since 26/11/2020), 5 directors and the new CEO have bought on market.

[nztx]

Depends on the wording on the insurance contract.

Typically, replacement of contents style policies cover 'unforeseen events.' Is heavy rain really fitting into this category?
More business interruption style policies also rely on an underlying event that triggers it (eg EQ closes CBD).


I note in less than 2 months (since 26/11/2020), 5 directors and the new CEO have bought on market.

perhaps they tuned into the wrong set of weather gods ?

[KJMLimited]

AGM on Tuesday next week..

[KJMLimited]

Umm sorry I misread the notice. 23 Feb not Jan. I got far too excited about an insurance company AGM.

[Sideshow Bob]

Tower to acquire ANZ legacy portfolio

22/2/2021, 2:07 pmTRANSACTMarket Information
NZX Limited
Level 1, NZX Centre
11 Cable Street
Wellington
New Zealand
Company Announcements Office
ASX Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
Australia

22 February 2021

Tower to acquire ANZ legacy portfolio

Kiwi insurer Tower (NZX/ASX: TWR) announced it has agreed to pay $14m in cash to ANZ to acquire and assume ANZ’s rights and obligations relating to servicing a portfolio of insurance underwritten by Tower. This transaction enables this portfolio to be brought into the Tower Direct business.

Tower provided insurance for ANZ and National Bank customers between 1990 and 2009 and continues to cover over 23,000 people under those policies. On completion of the acquisition these customers will be insured directly by Tower under a Tower branded policy. These customers have always been insured by Tower under these policies and that is not changing as a result of this acquisition. No steps need to be taken by existing customers.

Blair Turnbull, Tower CEO, says the deal delivers positive value for Tower and its shareholders by ending all future ANZ commission payments on the portfolio. Premiums from the ANZ portfolio contributed $40m in FY20 to Tower’s Gross Written Premium. The agreement also enables the migration of these customers to Tower’s leading cloud-based, digital platform which delivers operational efficiencies for the company and offers customers a more expansive and modern product range.
“We have a tried and true method to migrate customers from legacy platforms and products to our new technology, which improves the customer experience and delivers scale efficiencies. We adopted this successful acquisition strategy with Youi NZ, Club Marine and now ANZ,” said Turnbull.

Turnbull says that the acquisition means these customers will now have access to Tower’s leading digital and data technology that provides simple and rewarding experiences for customers. We will be deepening our relationships with these customers, with increased engagement and access to modern and innovative new products, as well as enabling them to go online to understand and manage all aspects of their insurance.

“We have a clear strategy to grow our business and this agreement continues to solidify our position in the market as a strong and innovative local insurer that is here for our customers,” said Turnbull.

“Our Partnership with ANZ has been a positive one over many years. As we look forward, we are excited to welcome these customers to Tower direct product range and to continue providing a leading customer experience,” said Turnbull.

No regulatory approvals are required to proceed under the agreement and the acquisition is unconditional, with completion expected to take place on 12 March 2021.
ENDS

[nztx]

Boys & Girls - was that your dividend that just disappeared out the door ?

TWR holders what remains of them appear to be a patient crew, perhaps too much so
when it comes to swallowing a trail of excuses on why no Divvie .. not even a smell
of one for long periods ..

[Filthy]

Boys & Girls - was that your dividend that just disappeared out the door ?

who needs dividends when you have a share price that is going up? oh. wait.

on the bright side, hopefully it means more growth eh. that will be good.

[nztx]

who needs dividends when you have a share price that is going up? oh. wait.

on the bright side, hopefully it means more growth eh. that will be good.

Probably growth in the next Cap Raise .. 1:5 may have just become 1:3 .. of course at the elevated rate

Any eager starters ?

Div next month - Nah .. Next HY - Nah Not Really .. Next year - what's the next acquisition instead to avoid the issue ?

[Filthy]

Next year - what's the next acquisition instead to avoid the issue ?

maybe TradeMe insurance; isn't that underwritten as well? haha

[Antipodean]

$40m gwp, that has an average trailing commission of say, (guessing) 10%, at that would be $4m / year not heading out the door. Not to mention the new ability to cross sell / maintain in house. So long term this is a good move by Tower. Sure, agreed that this means the FY21 dividend looking less likely.

This will be the 4th insurance book (Tower legacy, Youi, Marine) migrated into their new platform in a short timeframe which does infer some longer term decent growth, and scalability in the company based on the IT capex all being completed.