TWR - Tower Insurance.

[Rawz]

If the large events allowance isn't used at all, there will be a tax effect on the saving. At a 28% tax rate, this would add $32.4m to the NPAT for the full year.

So for the half year, the underlying NPAT might be $27m + $32.4m / 2 = $29.7m.

True that. Although I thought that TWR didnt have to pay tax for awhile with tax losses to use up

[Southern Lad]

True that. Although I thought that TWR didnt have to pay tax for awhile with tax losses to use up

Yes, but TWR has recognised a deferred tax asset on its tax losses so there will be tax expense as these tax losses are used up, just not a cash cost.

[ronaldson]

At the AGM officers indicated TWR wasn't expecting to pay tax in cash to IRD until 2026/27. Pending that the deferred tax asset is incrementally reduced.

But if FY24 is a really good year, as some of us are speculating if the inroads into the "large events" allowance are mitigated, then that timeline could be accelerated, and imputation credits might then be applied to dividends sooner.

[Leemsip]

Thanks for the analysis RAWZ.. seems like a no brainer eh. Higher interest rates for longer is all good as well, with their huge cash FLOAT (dont tell Valueinvestor), hoovering up interest revenue.

Trouble with owning tower is that there is always something which ends up scuppering the amazing year.... Spent 3 years in TWR purgatory previously.

I am now a reasonably big owner (by my meagre standards) again, and continuing to invest here when I find cash down the back of the couch.

[Leemsip]

Any ideas on who to write to inside Tower to recommend a massive buyback with the cash until imputation credits are available?

[winner69]

Any ideas on who to write to inside Tower to recommend a massive buyback with the cash until imputation credits are available?

Could drop Emily an email to forward to ChaIr Michael. She seems to Corporate Affairs person

emily.davies@tower.co.nz

[Rawz]

I am sure Stiassny (who holds 600,000 shares) does not need to be told any major windfall from large event allowance goes straight into a buyback.... surely..

After all when they got the EQC payout and had all that balance sheet strength they did the $30m capital return early 2022 was it?

In Stiassny we trust.

[Lego_Man]

I am sure Stiassny (who holds 600,000 shares) does not need to be told any major windfall from large event allowance goes straight into a buyback.... surely..

After all when they got the EQC payout and had all that balance sheet strength they did the $30m capital return early 2022 was it?

In Stiassny we trust.

Unfortunately they may calculate that the "PR boost" to the uneducated NZ retail investor market from resumption of dividends will be greater.

I would absolutely love a buyback programme commencing later this year.

[Leemsip]

Have written to Emily today. Will let you know how it goes...

[Rawz]

Maybe token dividend + buyback, like how MHJ shed their super profits. Not as if that went well with SP at 76cents now lol