TWR - Tower Insurance.

[Sideshow Bob]

Capital Return - Interim Court Orders Received - NZX, New Zealand’s Exchange

Capital Return to Shareholders – Interim Court Orders Received

On 24 November 2021 Tower Limited (Tower) announced a proposed NZ$30.4m capital return by way of a Court approved scheme of arrangement.

Tower has received initial orders from the Court to, amongst other things, put the capital return to shareholders at its ASM on 2 February 2022 for their consideration and approval. The scheme is also conditional on Tower obtaining IRD approval that no part of the capital return is in lieu of the payment of a dividend by 9 February 2022.

The scheme will involve Tower’s shareholders:
• having one (1) share cancelled for every ten (10) shares held (together with all rights attaching to those shares) on the record date. Fractions of a share will be rounded up or down to the nearest whole number (with 0.5 rounded down); and
• receiving a cash sum of NZ$0.72 for each share cancelled. Australian registered shareholders will receive these funds in Australian dollars at an exchange rate approved by Tower on or about the record date.

If shareholder and IRD approval is received, Tower intends to seek final orders sanctioning the scheme from the Court. If these final orders are received in late February 2022, payment of the capital return would be made in mid-March 2022. Exact dates will, however, be confirmed closer to the time of payment.
ENDS

[winner69]

Do Tower insure boats …like the sad looking ones in Tutukaka Marina

[KJMLimited]

I dunno. Act of God clauses may apply maybe. My knowledge is a bit skinny on that though.

[Antipodean]

Tower does have boat insurance. This kind of disaster is highly likely to be claimable - this is what insurance is for. Cannot see any reference to Act's of God in actual NZ insurance wording.

Note that from what I understand Tower boat insurance is NZ only.
Though their home/contents policies under Tower pacific may have some claims from recent events.
Unsure what scale that will be but should have some update when more is known.

I expect it is unlikely to be on the same scale as the house fires from last year as sadly house construction in NZ is insanely expensive relative to the pacific, but all speculation at this point.
Noting that late last year forecasts for FY22 assume a full use ($20m) of large scale event coverage of their own through re insurance.. check out slide 25 from announcement 21/11/2021.
So market might be spooked by this in the short term but long term not a scale event for Tower I expect.

Also something I'm noting is that Monday is the last day to buy twr with 2.5c dividend included which at $.715 is a 3.5% gross return for the half year not too shabby, plus a buyback coming up.

[ronaldson]

Update on Tonga Eruption and Tsunami event provided to NZX this morning. Seems around 2500 policyholders in Tonga. Inferentially, claims may be up to the $11.25m reinsurance excess for large events. No comment on possible boat claims arising from the Tutukaka Harbour surges.

[Sideshow Bob]

Capital Return to Shareholders - IRD Approval Received - NZX, New Zealand’s Exchange

CAPITAL RETURN TO SHAREHOLDERS – IRD APPROVAL RECEIVED
On 24 November 2021 Tower Limited (Tower) announced a proposed NZ$30.4m capital return by way of a Court approved scheme of arrangement.
Tower has received notice from the IRD that no part of the capital return is in lieu of the payment of a dividend. As such the Scheme is now conditional on shareholder approval at the ASM today and final orders sanctioning the scheme from the Court. If these final orders are received in late February 2022, payment of the capital return would be made in mid-March 2022, assuming the capital return is approved by shareholders at the ASM today. Exact dates will, however, be confirmed closer to the time of payment.
The scheme will involve Tower’s shareholders:
• having one (1) share cancelled for every ten (10) shares held (together with all rights attaching to those shares) on the record date. Fractions of a share will be rounded up or down to the nearest whole number (with 0.5 rounded down); and
• receiving a cash sum of NZ$0.72 for each share cancelled. Australian registered shareholders will receive these funds in Australian dollars at an exchange rate approved by Tower on or about the record date.
ENDS

[Sideshow Bob]

Tower Provides Business Update, Reconfirms Guidance - NZX, New Zealand’s Exchange

Kiwi Insurer, Tower Limited (NZX/ASX: TWR) today holds its Annual Shareholder Meeting and reconfirms its full year guidance.
Tower continues to grow while navigating a challenging environment

In the three months to 31 December 2021, Tower recorded $112 million gross written premium (GWP), representing growth of 12% on the same period last year.

Customer numbers grew by 6,000 over the first quarter to 310,000, an increase of 24,000 customers year-on-year. My Tower registrations also increased, with 150,000 customers now registered for the online service, up from 50,000 in the same period last year.

Blair Turnbull, Tower CEO, says Tower’s focus on supporting customers and delivering on its technology and distribution growth strategies has led to a good start to the 2022 financial year.

“This result has been driven by a combination of improved customer retention and new business, as well as inflation-based rating adjustments. Lower than expected motor and large house claims, as well as fewer severe natural events have also contributed towards a solid first quarter performance,” he says.

Tower continues to actively manage inflationary pressure on claims costs and Covid-related supply chain issues which began challenging the insurance industry in 2021 and are expected to continue throughout 2022.

The actions taken to address these external factors have allowed Tower to maintain a claims ratio of 47%, excluding large events, which is consistent with the same period last year. Disciplined cost control has seen management expenses remain consistent with the prior year at 38%.

Guidance reconfirmed
There is no change to Tower’s FY22 underlying net profit after tax (NPAT) guidance range of $21m to $25m, noting that this guidance assumes inflation pressures will continue throughout FY22 and that the $20m excess on Tower’s aggregate reinsurance is fully utilised.

Supporting Tonga’s recovery
Tower is still assessing the impact of the significant eruption of underwater volcano Hunga-Tonga-Hunga-Ha’apai and subsequent tsunami in Tonga and surrounding areas.

Mr Turnbull says, “Tower has been in the Pacific for almost 150 years and remains committed to our Pacific communities. Tower plans for such events and, alongside our robust reinsurance programme that underpins our resilience, we are in a strong position to continue to support our customers throughout Tonga’s recovery.”

Tower’s reinsurance programme provides up to $873m of cover for catastrophe events. Its reinsurance excess for such events is $11.25m which is within the $20m Tower has allowed for large events in FY22.

Financial information provided in this update is based on Tower’s unaudited management accounts as at 31 December 2021. Tower’s results for the half year ending 31 March 2022 will be released in May 2022.
ENDS

[Beagle]

Got my renewal notice for my car insurance premium from Tower last week. Insurance premium up by 27% with no claims and no explanation whatsoever regarding the increase. Not a single word to explain it.

I think what's grinding my gears the most though is that its well known that people have driven a lot less this last year with the extended lockdown (107 days in Auckland) which should have lead to a lot lower claims which is wholly unsupportive of such a substantial increase. Further, a family member in the panel beating industry tells me that the hourly rate insurance companies pay has not increased for many years which is leading to a crisis in the industry of retaining qualified staff.

Maybe they think old dog's are less attentive and now I'm 60 despite decades of no accidents they think I'll go wandering off the road in a daze lol.

It feels like I'm being overcharged so I shopped around a bit but couldn't find a better deal. ~$750 for a $40K car with a $1K excess seems like a lot. Wonder how much of that $750 goes in overheads, office leases, staff and profit, maybe $300-$400 ? Thinking about self insuring as a matter of principle because the premium seems excessive.

Anyone else drive around in a reasonable car and not have insurance ?

[SPC]

Problem is Beagle it's not really about covering the damage to your own vehicle ( and the less worth your vehicle has the better ie. 2 reliable cars worth less than 5k each so full redundancy vs 40k rapidly depreciating whatever) but your public liability if you hit someone or something else. Think a nasty lawyers Porsche, power pole, transformer, roadside infrastructure etc. That's where uninsured have no protection and others seeking to recover their costs are totally merciless (i.e insurers). How deep are your pockets if Vector et al hit you up for a transformer?.
3rd party isn't worth the saving as you have costs dealing with your own roadside wreckage and cleanup.

[850man]

Got my renewal notice for my car insurance premium from Tower last week. Insurance premium up by 27% with no claims and no explanation whatsoever regarding the increase. Not a single word to explain it.

I think what's grinding my gears the most though is that its well known that people have driven a lot less this last year with the extended lockdown (107 days in Auckland) which should have lead to a lot lower claims which is wholly unsupportive of such a substantial increase. Further, a family member in the panel beating industry tells me that the hourly rate insurance companies pay has not increased for many years which is leading to a crisis in the industry of retaining qualified staff.

Maybe they think old dog's are less attentive and now I'm 60 despite decades of no accidents they think I'll go wandering off the road in a daze lol.

It feels like I'm being overcharged so I shopped around a bit but couldn't find a better deal. ~$750 for a $40K car with a $1K excess seems like a lot. Wonder how much of that $750 goes in overheads, office leases, staff and profit, maybe $300-$400 ? Thinking about self insuring as a matter of principle because the premium seems excessive.

Anyone else drive around in a reasonable car and not have insurance ?

Looked at 3rd party fire and theft coverage as opposed to fully comprehensive?