TWR - Tower Insurance.

[winner69]

The Ohau release is slightly misleading in my opinion.

A claim being made against an insurance company is not an unexpected event. When a policy is issued a portion of the premium is transferred to provisions where it is set aside to meet expected claims. While a provision is obviously not an an exact determination of future events a customers house burning down is not a surprise.

It is only when claims exceed provisions and overtop excessive loss reinsurance the profit and loss takes a a hit.

Boop boop de do
Marilyn

So (as I sort of said) the Lake Ohau event claims are $5m to $7m higher than the provision set aside ...and will impact profit by this amount.

Suppose thats what they meant to so.

[Jaa]

The way they say a big event is going to ‘impact’ profit by $x sort of suggests that they planned to have no big events.

Surely they plan/budget to have events as a matter of course

Or is this $5m to $7m they mention the bit that’s over the planned losses?

And they had no F21 forecast yet ..have they?

They budget for two overcap insurance events a year. Overcap means more than $5m of losses, $5m being the limit before their reinsurance kicks in. Can't remember if this is before or after tax. Obviously if those events don't occur it is a bonus for the company. Still affects how much profit they make of course.

With house prices these days, $5m seems to only be 5-10 houses

[nztx]

The Christmas fairy remains locked in the Cupboard at TWR for long suffering Shareholders for yet another year ?

Fairly sad state of affairs - isn't it ..

[Dlownz]

The Christmas fairy remains locked in the Cupboard at TWR for long suffering Shareholders for yet another year ?

Fairly sad state of affairs - isn't it ..

If they hadn't paid back premiums for lockdown this would have equaled it

[Poet]

What a ridiculous announcement. Very poor first shareholder communication from new CEO who has now had his feet under the table for two months.
What exactly are they trying to say? Is the $5m to $7m the gross cost of the event, or something else?
Also, what exactly is going on with the EQC claim - no news for months - do we have a court date, are negotiations going on in the background.
I get the impression that the chair Michael Stiassny has, at some distant point in the past, had some success with litigation and now thinks that is the go to solution whenever there is a dispute - see how he dragged NZ Windfarms through litigation with palmy council and neighbours (re consents) for years before he was forced off the board so that a new board could negotiate a settlement - is this the way it needs to go with Tower?

[nztx]

Fairly good at spending Shareholder's Money on acquisitions, shoring up the camp & online platforms along the way

Perhaps very good 'Allrounders' on TWR Board rather than talent with long proven record of expertise in all things Insolvency could produce a far better results, increased shareholder confidence & following in the TWR Ship instead ? ;-)

Lets face it - recent fortunes have seen TWR's Hand out for Cap Raise(s), etc etc followed by a trail of disappointment for Shareholders & a langishing SP as a consequence of TWR's attempts at Empire Building and Improvements & shoring things up not delivering to date..

[winner69]

Fairly good at spending Shareholder's Money on acquisitions, shoring up the camp & online platforms along the way

Perhaps very good 'Allrounders' on TWR Board rather than talent with long proven record of expertise in all things Insolvency could produce a far better results, increased shareholder confidence & following in the TWR Ship instead ? ;-)

Lets face it - recent fortunes have seen TWR's Hand out for Cap Raise(s), etc etc followed by a trail of disappointment for Shareholders & a langishing SP as a consequence of TWR's attempts at Empire Building and Improvements & shoring things up not delivering to date..

You sound rather disillusioned nztx

Time to give them a miss?

[tim23]

Fairly good at spending Shareholder's Money on acquisitions, shoring up the camp & online platforms along the way

Perhaps very good 'Allrounders' on TWR Board rather than talent with long proven record of expertise in all things Insolvency could produce a far better results, increased shareholder confidence & following in the TWR Ship instead ? ;-)

Lets face it - recent fortunes have seen TWR's Hand out for Cap Raise(s), etc etc followed by a trail of disappointment for Shareholders & a langishing SP as a consequence of TWR's attempts at Empire Building and Improvements & shoring things up not delivering to date..

They have continued to disappoint - gee imagine if they still had funds management operation that they sold to Fisher.

[Sgt Pepper]

Glad I bailed out two years ago, patience is a virtue I know but does have its limit

[ados_nz]

https://www.stuff.co.nz/business/mon...-customer-says