TWR - Tower Insurance.

[Arbroath]

As at 30 September 2020 TWR had tax losses of circa $90m, which a tax benefit of $25.7m had been recognised in the financial statements (assuming all recognised tax losses are NZ tax losses rather than Pacific Islands, etc.). As future profits are earned, the income statement records a tax expenses as these losses are used up. That doesn't mean any tax will be paid to IRD and therefore there won't be any imputation credit available. If TWR made a taxable income in NZ of $30m per year (whick looks about right given the NZ segment profit disclosed for 2020, adjusted for the EQC settlement write off), then it will be three years before they need to pay any tax to IRD and three years before they can attach imputation credits to dividends.

Thanks for clarifying that so well. Will check the actual statements next time instead of their presso’s which show tax. Cheers

[Jaa]

i agree with jaa that they probably brought the portfolio instead of risking losing all those customers and the 40 million revenue/ yr. cost $609 per customer approx so they wont get the full benefits of the purchase till the following yr.
and like you say bigger client base means potential risks are more claims on there diminishing investment revenue

I think they bought them so they can transfer the customers to new policies on the new system and turn off their old IT systems. Which is where the big cost savings are. But not without risk.

Note also, bond yields are rising, so Tower's investment revenue will be too for the first time in a long time.

[JohnnyTheHorse]

Bullish break of weekly/monthly bull flag if it can sustain this, would like a bit more volume to come in. Also breaking above a multi year downtrend.

Attachment 12332

Looking positive for the bull break, but still fighting a bit of resistance at 75. Next areas of major resistance would be 80-82, then 100.

[JohnnyTheHorse]

Insider buying continues... CEO has bought another 95,000 or so on market.

https://www.nzx.com/announcements/368492

[Playa]

maybe a takeover around the corner?

[Gerald]

maybe a takeover around the corner?

Someone can correct me if i'm wrong, but insider buying would mean the opposite (no buyers sniffing), otherwise they would be trading on privileged info.

Still shows confidence though.

[Poet]

Someone can correct me if i'm wrong, but insider buying would mean the opposite (no buyers sniffing), otherwise they would be trading on privileged info.

Still shows confidence though.

You are quite right, there certainly won't be an imminent takeover that the CEO knows about otherwise he would be guilty of insider trading.

[Poet]

You are quite right, there certainly won't be an imminent takeover that the CEO knows about otherwise he would be guilty of insider trading.

But his buying is a definite sign of confidence (as was chairman buying a few weeks ago)

[Balance]

https://www.stuff.co.nz/national/300...rs-gns-advises

Another natural disaster hit for the insurance sector?

[Poet]

https://www.stuff.co.nz/national/300...rs-gns-advises

Another natural disaster hit for the insurance sector?

I wouldn't think so.
Now that the EQC has agreed to let private insurers manage the whole of any earthquake related claims, the insurance companies will presumably make a margin on the claims they process for the EQC. So any mild/moderate earthquakes that result in individual property damages below $150k will actually benefit insurance company bottom lines