Quote Originally Posted by dubya View Post
Can someone please tell me the reasons why Tower haven't paid a dividend in the last few years? They seem to have been doing OK....
Where to start....

They've had regular impacts from Christchurch Earthquake claim deterioration, multiple capital raises to stave off the regulators and takeover attempts, and a large reinsurance litigation case that settled out of court. Worth noting that one of the previous CEOs (Hancock) instigated a share buyback to try inflate the share price... all just before one of those huge Christchurch claim deterioration events... absolutely ludicrous behavior... although he did oversee the instigation of that reinsurance cover which ultimately saved about $20m-ish of balance sheet exposure. They were just now looking good to start paying regular dividends after the acquisition of Youi's policies and their new technology platform now in place before Covid-19 hit. I have no idea what the impacts of Covid-19 are for general insurance though... Insurance is considered an "essential service" so they're still serving customers, but I can only assume somewhat of a slow-down in terms of new policies... but also no cars on the roads and everyone at home means that automobile accidents and burglary claims are all down to near-zero levels.