TWR - Tower Insurance.

[850man]

https://www.finder.com/nz/finder-car...ce-awards-2021

Trademe insurance (essentially Tower with a new face on it) named best vehicle insurer for 2021. Interestingly Tower themselves coming in at 7th place.

[Scrunch]

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.

Closed up at 78 today, although the volume wasn't super-high at 209k. JTH, what sort of volume would be needed to confirm this break?

[JohnnyTheHorse]

Closed up at 78 today, although the volume wasn't super-high at 209k. JTH, what sort of volume would be needed to confirm this break?

We have a confirmed breakout now. This was confirmed by the breakout of resistance, then drop to retest the old resistance (now support) and now the breakout to a new high.

Someone has been accumulating since December and I'm picking they are close to 5% so we will find out who soon. Salt Funds has likely been providing a large portion of the sell volume.

[850man]

https://www.nzx.com/announcements/369318

Some news this morning however I'm not sure of the dignificance of this. Can any of you wise people help me here please?

[JohnnyTheHorse]

https://www.nzx.com/announcements/369318Some news this morning however I'm not sure of the significance of this. Can any of you wise people help me here please?

It essentially frees up capital in the business for capital return to shareholders or acquisitions. They currently have excess capital the equivalent on 1/3rd of their market cap. I can appreciate the view of not investing in insurance companies due to the ever increasing risks. However for me, between the turnaround fundamentals from their digital strategy, large insider buying and history of takeover attempts the value proposition is just too large (as part of a well diversified portfolio).

[Arbroath]

it effectively means they are holding $115m of excess capital although the reality is they need a sensible margin of excess capital over the minimum. Not sure what that number should be but maybe $50m or so. They have enough of our capital from rights issues to either pay dividends (not my favourite when they are unimputed) or do a share buyback which would be better, or even a capital return but I doubt they'll do that - probably want to look for more small bolt on acquisitions to drive growth.

[850man]

Thanks JTH, Arbroath

[bull....]

some big off-market trades today. looking very good technically and fundamentally rising bond yields will help twr alot.

[JohnnyTheHorse]

some big off-market trades today. looking very good technically and fundamentally rising bond yields will help twr alot.

Been happening since it was in the 60's. The estimate the person accumulating is now close to 5% so a SSH shouldn't be far off. Has the potential to pop if Salt stops their sell down (although they have plenty more shares to go...).

Disc: in long term portfolio, plus a separate trading position.

[bull....]

Been happening since it was in the 60's. The estimate the person accumulating is now close to 5% so a SSH shouldn't be far off. Has the potential to pop if Salt stops their sell down (although they have plenty more shares to go...).

Disc: in long term portfolio, plus a separate trading position.

im with you on owning this one , agree with everything you have said. i am hoping they do a buyback of shares with surplus funds which would make the fundamental attraction even better make it look very cheap at current prices in hindsight