TWR - Tower Insurance.

[mike2020]

Is it true though? Did you participate in the CR? Were you waiting for the EQC settlement?

[JohnnyTheHorse]

Insiders buying more. Blair with another 90,000...

https://www.nzx.com/announcements/372899

[bull....]

6.5% dividend yield?

10% gross at 75c

[Poet]

10% gross at 75c

Dividend is not imputed as far as I can see, so assuming a full year 5.5c dividend gives us a gross yield of 7.3% at 75c share price

[nztx]

Dividend is not imputed as far as I can see, so assuming a full year 5.5c dividend gives us a gross yield of 7.3% at 75c share price

that seems correct - nothing attached to the 2.5 cps coming up

FY Accounts 2019 & 2020 (Sep 30) both have closing imputation credits at $271K so no tax being paid
to allow for credits to be attached from what I can see ..

I dont know if credits were attached in days before dividend was suspended as Div history
doesn't show up on NZX site - so it must be at least 3 years since a dividend was paid by TWR

Others may know when last div was paid out

Imputation credits attached make quite a difference to Gross Div Yield

[bull....]

Dividend is not imputed as far as I can see, so assuming a full year 5.5c dividend gives us a gross yield of 7.3% at 75c share price

correct i must have been thinking 10% when they get back to having imputation credits

[Southern Lad]

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.

See my earlier post on the tax losses recorded in the TWR September 2020 financial statements. As noted, it is likely to be at least three years before TWR moves back into a tax paying position and will therefore generate imputation credits to attach to dividends.

[JohnnyTheHorse]

With the dividend you need to keep in mind that the company is sitting on close to $100m of excess solvency margin (which will increase further next year). On the assumption that this capital is either returned to shareholders, buyback of shares or used to fund earnings accreditive acquisitions, you can expect earnings per share and hence dividend yield to increase 50% from current levels in future (and this is before any normal growth). This is a deep value play (I note comments from Balance re this sector are valid, however in my view the risk/reward stacks up well here).

Management have bought and continue to buy meaningfully large positions. They see the value and back themselves to deliver the growth over the medium term.

I still expect however that Bain will be trying to shop this around and it will be subject to a takeover.

[Jaa]

Who just sold around 3 million shares at 70c?

[Balance]

https://www.nzherald.co.nz/nz/weeken...MCCDI33PUX6DE/

Probably more ‘abnormal event’ claims to hit the insurance sector and Tower.

Thing is, these abnormal events are normal and realistically, insurance companies have to keep cranking up premiums as high and as fast as they can to ‘weather’ these events.