TWR - Tower Insurance.

[Rawz]

there are 172k shares offered at 62 cents. if that gets taken out quickly this morning it would be a very good sign

[Rawz]

Off market trade of 2.793m shares went through at 58 cents on the open i see

[bull....]

Off market trade of 2.793m shares went through at 58 cents on the open i see

thats a big parcel

[nztx]

Someone must be needing Christmas spending money in a hurry

[ronaldson]

Reflecting upon ERD, RAK, ARV et al I would say the next NZX listed entity that is a prime candidate for a bid to be "unexpectedly" lobbed in is TWR.

I am a significant holder under several hats so my view should be assessed accordingly but recent new entry on the share register, TWR's decision to engage in a strategic review, the general "cleaning up" of legacy issues, the divestment of activities in PNG and the Solomon Is ( and intention to exit Vanuatu if possible ) to reduce Pacific exposure, the off-shoring of a lot of administration to a cheaper hub in Fiji, an industry leading IT platform and ongoing considerable (in % terms) GWP growth in the market sector TWR operates in suggest to me TWR offers either a current or a new player in the wider NZ Insurance market a clear opportunity to either enter or upscale.

Just my thought at the current share price.

[Rawz]

And dont forget Ronaldson those guys at Goldman have been tasked with finding shareholder value or something like that so yes with what you say above and Goldman i too am thinking TWR is a prime candidate for a takeover offer

[Muse]

Reflecting upon ERD, RAK, ARV et al I would say the next NZX listed entity that is a prime candidate for a bid to be "unexpectedly" lobbed in is TWR.

I am a significant holder under several hats so my view should be assessed accordingly but recent new entry on the share register, TWR's decision to engage in a strategic review, the general "cleaning up" of legacy issues, the divestment of activities in PNG and the Solomon Is ( and intention to exit Vanuatu if possible ) to reduce Pacific exposure, the off-shoring of a lot of administration to a cheaper hub in Fiji, an industry leading IT platform and ongoing considerable (in % terms) GWP growth in the market sector TWR operates in suggest to me TWR offers either a current or a new player in the wider NZ Insurance market a clear opportunity to either enter or upscale.

Just my thought at the current share price.

agree it looks like they are clearly putting in the building blocks to achieve that outcome

ronaldson what is the dividend policy and history there if you don't mind my asking? If consensus is to be believe the prospective yields are huge but the history is patchy - only paid dividends in 2 of the last 5 years

[Rawz]

Off market trade of 2.793m shares went through at 58 cents on the open i see

another big crossing of 3.55m shares at 58 cents. whats going on???

[ronaldson]

agree it looks like they are clearly putting in the building blocks to achieve that outcome

ronaldson what is the dividend policy and history there if you don't mind my asking? If consensus is to be believe the prospective yields are huge but the history is patchy - only paid dividends in 2 of the last 5 years

Going back to 2011 (the earthquake era) dividends have been as follows:-

FY2011 interim 4.0c
final 2.0c
FY2012 interim 5.00c
final 6.0c
FY2013 interim 5.0c
final 6.0c
FY2014 interim 6.50c
final 8.0c
FY2015 interim 8.5c
final 7.5c
FY2016 interim 8.5c

then nothing until FY2021
interim 2.5c
final 2.5c
FY2022 interim 2.5c
final 4.0c

No dividend, either interim of final was paid for FY23 (year to 30 Sept)

However the results announcement on 23 November this year included the statement " Consideration will be given to restarting dividend in FY24 if it is prudent to do so".

The 2016 - 2020 hiatus seems mostly to coincide escalating claim costs incurred/settled from the ChCh earthquake and the trickle, then flood, of "overcap" claims referred by EQC from that source also.

And remember there were both capital raises and a share buyback in the period above too. We are therefore unlikely to return to the larger annual dividends paid previously because the capital base/shares on issue is higher currently. But Stiassney is focused on shareholder payout in my view so we can hope for better (ie dividend resumption) soon.

[Muse]

good stuff thank you