TWR - Tower Insurance.

[trader_jackson]

Wonder if Tower will do a QBE and have a ‘preemptive’ capital raise

QBE seemed pretty gloomy about the future.

I would not have thought so, but the thought did cross my mind.
Could just not pay a dividend and that would be a stealth capital raise.

[nztx]

I would not have thought so, but the thought did cross my mind.
Could just not pay a dividend and that would be a stealth capital raise.

Didn't they indicate that resuming Dividend payments was planned in 2020/21 year ?

[Cadalac123]

Didn't they indicate that resuming Dividend payments was planned in 2020/21 year ?

That was before the coronovirus though.. It's difficult to ascertain the impact this has had on TWR.
It was a solid dividend play prior, but now i'm not really sure it's a bit of a stab in the dark until we get
official info. Can speculate bear or bull cases.

[nztx]

That was before the coronovirus though.. It's difficult to ascertain the impact this has had on TWR.
It was a solid dividend play prior, but now i'm not really sure it's a bit of a stab in the dark until we get
official info. Can speculate bear or bull cases.

I dont see many disasters since
Returns & non cash write downs on the Investment Reserve Funds these sort of outfits have will be a different story

[Cadalac123]

I dont see many disasters since
Returns & non cash write downs on the Investment Reserve Funds these sort of outfits have will be a different story

Yeah I agree and I know what you are saying, but they have been extremely woobly about the dividend reintroduction for a while now and I wouldn't be surprised if they delayed it.

The IT transformation was great too I guess, but need to be realistic about the slowdown outweighing benefits of no disasters.

[Jim]

It just a dog. It suck a big bundle of my hard earn money. They better not.....

[JeremyALD]

Hi everyone, can someone clarify what the 228m of fixed interest securities are on towers Balance sheet under assets. Is this effectively cash? Correct me if I'm wrong but this would mean they are holding almost 300m effectively in cash?

[nztx]

Hi everyone, can someone clarify what the 228m of fixed interest securities are on towers Balance sheet under assets. Is this effectively cash? Correct me if I'm wrong but this would mean they are holding almost 300m effectively in cash?

Note C5 to 2019 Accounts:

"• The fair value of fixed interest securities is based on the maturity profile and price/yield."

At a guess - Govt / Local Body Stock & similar Assets

[JeremyALD]

Note C5 to 2019 Accounts:

"• The fair value of fixed interest securities is based on the maturity profile and price/yield."

At a guess - Govt / Local Body Stock & similar Assets

That's a huge amount of money / investment for a company with hardly any debt to have a market cap of 270m. Am I missing something?

[Cadalac123]

That's a huge amount of money / investment for a company with hardly any debt to have a market cap of 270m. Am I missing something?

Insurance companies keep a lot of money floating in high grade bonds. It isn't anything special to TWR.

TWR's balance sheet is good right now but for different reasons. The low OCR will mean investment income will decrease but it's not a significant portion of total revenue. But at the moment any extrapolation of TWR's balance sheet is entirely dependent on how they've been impacted during this period. We can hope claim expenses were done and so forth but it's all assumptions. Long-term I do see good potential in TWR, but as with any insurance company this relies on no catastrophic events.