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  1. #1491
    Legend Balance's Avatar
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    Quote Originally Posted by 850man View Post
    This looks like good news but the wording isn't clear

    https://www.nzx.com/announcements/376055
    Means reinsurance will only cover up to $7.5m - after that, Tower will take the hit?

  2. #1492
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    Quote Originally Posted by Balance View Post
    Means reinsurance will only cover up to $7.5m - after that, Tower will take the hit?
    Reads that way. $7.5m in the scheme of this event does not seem significant

  3. #1493
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    Not a very helpful announcement
    Do they expect claims to exceed 7.5m or not
    Does this mean no more reinsurance available for rest of year
    On the face if it seems a strange and inadequate reinsurance arrangement 14m excess and 7.5 m cover
    Needs urgent clarification by company

  4. #1494
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by winner69 View Post
    Guess next years Tower’s reinsurance premiums will be a lot higher …based on claims experience I’d say
    Vastly higher I would say and the speed of increase in the rate of so called 1 in 100 year weather events makes this a VERY TOUGH sector.
    Last edited by Beagle; 22-07-2021 at 11:45 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.

  5. #1495
    Legend Balance's Avatar
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    Quote Originally Posted by 850man View Post
    Reads that way. $7.5m in the scheme of this event does not seem significant
    Claims will be in the tens of millions?

  6. #1496
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    Specifically says "this event" for $7.5m in the announcement. Too early to forecast claims total costs.

    142 claims so far with more expected over the coming days - however the bulk will be there.
    If they reach 200 claims say, at $7.5m there is an average of $37,500 per claim coverage which is fine for contents claims, depends if there are house claims (though usually not total loss in these weather events) in the mix.

    Means tower can pay a ton of money to customers and recover from reinsurance, building some good will without affecting the bottom line.
    Last edited by Antipodean; 22-07-2021 at 11:45 AM.

  7. #1497
    Speedy Az winner69's Avatar
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    Quote Originally Posted by KJMLimited View Post
    I'm looking forward to the off-mkt sale of 29m shares @ 0.68 to clear the overhang.
    They better hurry up to get that 68 cents

    May have to accept less nextvweek
    . To say extreme valuations are “justified” is also to say that long-term market losses are “justified.” .

  8. #1498
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by Antipodean View Post
    Specifically says "this event" for $7.5m in the announcement. Too early to forecast claims total costs.

    142 claims so far with more expected over the coming days - however the bulk will be there.
    If they reach 200 claims say, at $7.5m there is an average of $37,500 per claim coverage which is fine for contents claims, depends if there are house claims (though usually not total loss in these weather events) in the mix.

    Means tower can pay a ton of money to customers and recover from reinsurance, building some good will without affecting the bottom line.
    Really ? Slow process on the West Coast as to who is red stickered (complete rebuild) and who is not. How do you make a claim if you're not sure what you're claiming for ?
    Plenty more total house rebuild claims will come flooding in over the coming weeks.

    How many more so called 1 in 100 year weather events this year ?
    Last edited by Beagle; 22-07-2021 at 03:48 PM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.

  9. #1499
    Speedy Az winner69's Avatar
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    Industry in bad light again

    Pack of rogues

    https://www.newsroom.co.nz/insurance...9f0dc-97970805
    . To say extreme valuations are “justified” is also to say that long-term market losses are “justified.” .

  10. #1500
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    When TWR updated the Canterbury flooding event in June they had 164 claims and expected a cost of $3m before tax. The recent widespread July event, with emphasis on the West Coast, is 142 claims presently so even if more to come should stay under $7m. In the first Half year the major events were the Ohau Fire and the Napier flood, leading to $9.3m large event costs being booked. The presentation given with the Half Year results said long term average for large events is $8m pa, so while the 20/21 year is shaping to come in at over $14m which is the sum before the reinsurance of $7.5m kicks in it doesn't seem to me likely that $21.5m will be exceeded given TWR has less than 10% of the General Insurance market in NZ unless risk has been significantly concentrated in the localities most seriously affected.

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