TWR - Tower Insurance.

[POSSUM THE CAT]

Hoop If IAG runs AMI like some of the other companies in its stable seem to be run. TWR will have a lot of AMI policy holders shifting camp

[Halebop]

Hoop If IAG runs AMI like some of the other companies in its stable seem to be run. TWR will have a lot of AMI policy holders shifting camp

I suspect they will gain very little. Tower have gained very little traction in the general insurance market over a long period. They can't attract or retain good people, their processes are awful and their customers know it. AA Insurance will be the winner in the direct market - they have already been stealing market share from AMI, Tower and State. IAG will inevitably rebalance AMI pricing to a sustainable level and AA Insurance will benefit. Without some game changing talent or event, Tower's best hope is to sell out of general insurance.

[POSSUM THE CAT]

Halebop have you ever had experience of claiming off AA insurance?

[Halebop]

Halebop have you ever had experience of claiming off AA insurance?

Yes but that isn't the way to work it out. I've seen the results of third party surveys of direct underwriter customers using acceptable methods like NPS.

When people say "I made this claim and my experience was shoddy" they are often referring to something that happened in 1986. The exerience needs to be contemporary and the sample needs to be significant. My experience of ten years ago probably doesn't give the same confidence as the experience of 1,200 customers 3 months ago. Better yet to see 10 years of large samples trended out...

[Hoop]

Sheeesh...To think a nearly bought in around the Christmas break at 1.50

[Lizard]

Sheeesh...To think I nearly bought in around the Christmas break at 1.50

... and I did....

Fortunately small position just to get a feel for it. Not sure what is behind the fall yet, but looks a bit ominous.

[percy]

I have them on watch list.What has stopped me buying is not so much my concern for the insurance business ,but more of a concern about the return their "float" is earning in difficult markets.

[POSSUM THE CAT]

Maybee they were hoping they were going to buy AMI insurance

[Jaa]

Gaynor also came out on Saturday with this zinger about GPG being unable to flog Tower for $2.

For example, is it holding out for $2 a share for Tower instead of selling its 35 per cent stake at around current market levels?

[macduffy]

Well, "everyone" should also know that the insurance industry's returns on their premium income float has also been hit by lower returns from their bond investments. And that interest rates don't look like making an early upward movement.

TWR's SP is just following the trend - see QBE for example.