TWR - Tower Insurance.

**Rawz** · 15-04-2024, 10:11 AM

Originally Posted by Leemsip

1mill shares traded Friday. Huge pick up in volume as per bull. Interesting…. Anyone got a buyout price they would be happy with? $1.20?

FY26 underlying EPS guidance from the company is 18cents. Thats a forward looking p/e of 3.8

Over the last 7 years TWR has traded on an avg 9.4x P/E. Im happy to wait for the re-rate back to 9.4x. I.e. 18cents x 9.4= $1.69 sp. This is 138% gain from an investment today. Plus dividend yield is going to be double digits.

This is worth a big punt

**bull....** · 15-04-2024, 11:06 AM

Originally Posted by Rawz

FY26 underlying EPS guidance from the company is 18cents. Thats a forward looking p/e of 3.8

Over the last 7 years TWR has traded on an avg 9.4x P/E. Im happy to wait for the re-rate back to 9.4x. I.e. 18cents x 9.4= $1.69 sp. This is 138% gain from an investment today. Plus dividend yield is going to be double digits.

This is worth a big punt

buyback will make the fundamentals even more appealing

**Lego_Man** · 15-04-2024, 11:20 AM

The Alpine Fault is the only thing that can halt the rise of TWR now ;-)

**Rawz** · 15-04-2024, 01:13 PM

4m shares gone through at 73cents

**bull....** · 15-04-2024, 01:15 PM

Originally Posted by Rawz

4m shares gone through at 73cents

something big is up eh volumes last week massive

**Leemsip** · 15-04-2024, 01:24 PM

So maybe a buyback?

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Thank you for your considered note and for your investment in Tower. We certainly share your aspirations for a strong next couple of years and beyond.

Tower’s Board considers it important to maximise the efficient use of capital and to provide a return on capital to Tower’s shareholders. As such the Board regularly considers Tower’s capital position and, where prudent to do so, the range of options it has available to return any surplus capital back to shareholders. For example, Tower has previously returned capital (via a share buy-back) from an excess solvency position in FY22 and this is an option the board has to redistribute capital to shareholders.

I would also note that capital distributions (via dividends or other means) are subject to our dividend & capital management policies:

Tower’s policy is to pay a sustainable annual dividend to shareholders that aims to be in the range between 60-80% of “adjusted earnings” (defined as the reported full year Net Profit After Tax (NPAT) plus acquisition amortisation and unusual items) for the Tower consolidated group, where prudent to do so.
Tower’s capital management policy stipulates the amount of target solvency capital Tower aims to hold above regulatory requirements, and this informs the Board as to how much capital is available for distributing funds back to shareholders.

Tower’s updated solvency position will be shared at our half year results in May.

Regarding imputation credits, we acknowledge that the dividends are currently not imputed due to the tax losses brought forward that offset any current tax payable to IRD so that new imputation credits are not being created. Under the current targets we issued at our ASM, we expect to utilise these tax losses some time in FY26, from which time cash payments of tax will recommence and imputation credits will be available. The Board considers that it is in the interests of shareholders to continue to pay a sustainable annual dividend, even if no imputation credits are available.

Michael Stiassny