TWR - Tower Insurance.

[winner69]

Insurance companies made huge fortunes over the years ‘investing’ the premiums in oil / coal and other ‘evil’ companies which are to blame for climate change

Now they bemoan more regular climate change induced big events etc etc and having to manage the risks around them.

Certain irony ...but at the end of the day I suppose we all pay the penalty

[Jaa]

Insurance companies made huge fortunes over the years ‘investing’ the premiums in oil / coal and other ‘evil’ companies which are to blame for climate change

Now they bemoan more regular climate change induced big events etc etc and having to manage the risks around them.

Certain irony ...but at the end of the day I suppose we all pay the penalty

This is a good narrative but not a winning one when it comes to Tower. They mostly invest in government bonds.

[winner69]

This is a good narrative but not a winning one when it comes to Tower. They mostly invest in government bonds.

Do now but probably not in the good old days ...but then they were mainly a life company (and government controlled)

My first interest in Tower came from when they mutualised around 1990 ....good when they demutualised though and they were listed on the NZX

[ronaldson]

Am I the only one who thinks we should be provided with a claims update following the Canterbury floods?

[Antipodean]

Am I the only one who thinks we should be provided with a claims update following the Canterbury floods?

Claims are still being lodged, adjusters reporting, quotes being obtained and approved. It doesn't all get confirmed in a few days or even a week. Even with work underway invoices will be sent back to HO for payment and that adds a bit more time. Typically it's not worth reporting on claims under they are in (or close to) a finalised state to get an accurate understanding of costs.

Flooding claims aren't nearly as costly as fire or other large events. Modern carpets are relatively easy and cheap to replace, and a lot of furniture and interiors can be dried out and salvaged with modern industrial blowers. We'll see in due time.

[Poet]

Claims are still being lodged, adjusters reporting, quotes being obtained and approved. It doesn't all get confirmed in a few days or even a week. Even with work underway invoices will be sent back to HO for payment and that adds a bit more time. Typically it's not worth reporting on claims under they are in (or close to) a finalised state to get an accurate understanding of costs.

Flooding claims aren't nearly as costly as fire or other large events. Modern carpets are relatively easy and cheap to replace, and a lot of furniture and interiors can be dried out and salvaged with modern industrial blowers. We'll see in due time.

And, in any case, I don't think water got into very many houses. Most of the damage was land/fencing/public infrastructure (and a few vehicles from what I saw)

[sb9]

Oh dear, just when things were looking bright, a second downgrade. Glad I cut my losses and sold out at first downgrade release. They sure have some bad luck on their side.

GLTAH.

[peat]

I Some risks vary by location

I've worked in the insurance industry and quite frankly, if I was an underwriter, I'd take the whole Sth Is. off my book.
But it doesnt work like that ... scale is critical. I think Scrunch is right saying any one place may only experience a one in a hundred every hundred years but that still gives for a lot of disasters over all the possible locations. But yeh I know what we are all thinking about risk. Its riskier than we think!!

[ronaldson]

Looks like an average of around $20k per Canterbury rain event claim is anticipated ( combination of motor, contents and house policies - less any excess ) with perhaps a few more than the 164 currently lodged. Tower claim just over 9% of national general insurance policies in force, with a bias to motor. I wonder what proportion of claims for this event are held by Tower? Suggests around 2000 residential/motor insurance claims will be generated overall by this event across the industry. Of course much damage will be uninsured/uninsurable so losses much higher.

[kiora]

"8% increase in claims cost due to building costs"
https://www.pressreader.com/category/business/en/nz