TWR - Tower Insurance.

[bull....]

Tower launches partnership with NZ Defence Force

Tower Insurance has partnered with the New Zealand Defence Force (NZDF) to provide tailored insurance policies to more than 150,000 people, covering current and former service people, and their families.

https://www.goodreturns.co.nz/articl...nce-force.html

[Azza]

I'll have to check that out and see if it's any better than market offerings... I'll be sure to let you all know if everyone starts jumping ship

[winner69]

Salt has TWR as their biggest long in their long/short fund

Last update they said this -

The second largest tailwind came from another familiar name -our very large long in Tower Limited (TWR, +10.1%). A further piece of the puzzle fell into place with the RBNZ reducing TWR’s minimum required solvency margin from $50m to $25m in recognition of the progress that has been made on settling Christchurch earthquake claims. The remaining $25m overlay will be reviewed in 12 months and we expect it will be removed.

This reinforces our thesis of TWR being a company that is awash in capital and which has an array of organic and inorganic growth opportunities with which to invest it accretively

[bull....]

Today, Kiwi insurer Tower announced it is partnering with CSC Buying Group and New Zealand InsurTech start-up Sentro to provide hundreds of thousands of New Zealanders with access to discounted insurance for the first time

https://www.scoop.co.nz/stories/BU21...-consumers.htm

[Antipodean]

Really leveraging that new tech platform

[nztx]

Really leveraging that new tech platform

wonder if they're discounting any claims on business written off there ?

Nothing like diving in the deep end to discover the depth properly and further enhance exposures to said risks
... that is until things go badly awry

I guess we better hope that no 'Adverse Events' or further potential Acquisitions that interest the TWR Board
crop up in the short - medium term, or prospect of a dividend might be curry ... yet again ..

[Antipodean]

wonder if they're discounting any claims on business written off there ?

Heh you know that's not how insurance works, the claim costs are the claim costs.
At a guess there is likely more savings in admin costs and some scaling efficiencies coming from this kind of deal.

I guess we better hope that no 'Adverse Events' or further potential Acquisitions that interest the TWR Board
crop up in the short - medium term, or prospect of a dividend might be curry ... yet again ..

Yes I hope people are aware the dividend is in no way guaranteed, just intended. Tower is still on the path of needing to display long term reliability regarding the dividend stream.

Adverse events are a constant reality for any insurance company, that is what reinsurance is for though.

Acquisitions are fine so long as they add longer term value. I'm ambivalent as to whether funds go towards good acquisitions or dividends. Just have to assess each one on its merits.

[X-men]

Downgrade...auchh

[Leftfield]

Downgrade...auchh

Bad news sneaked out at the end of the day.... here's the link.

[percy]

If insurance companies have their "float" earning little return in fixed interest,that must mean their profits must be generated in underwritting.
History tells us there a few profits there,it was always been the "float" that was profitable.As Southern Lad pointed out, the "float" was what attracted Warren Buffet's attention.

And from today's announcement we see a very poor use of the float.
The low interest rate environment is impacting investment income, with $0.6m income in the first half of 2021 compared with $2.2m in the corresponding period of 2020.