TWR - Tower Insurance.

[Baddarcy]

Today's trading was unusually high for TWR I wonder the big boys might have heard something that we don't know or is it a bargain ? Time to accumulate for the long haul

Perhaps, it seems to be on a downwards trend just at the moment, i reckon there are the following pressures with Down currently winning.

Down - The Earthquake Provision increase
Up - Increase in profit guidance
Up - Pending on market buy back

My gut feeling is that the downward pressure will dissipate before the 26th May results announcement and then the on market buy back will provide some support. As always the trick is to pick the bottom.

But DYOR !!

[bull....]

breakout multi year range 2.40 maybe

got pretty close 2.36 topped out, I am watching to re enter

[Baddarcy]

got pretty close 2.36 topped out, I am watching to re enter

Yes it did, from memory it bounced off of 2.38 3 times over a few months. Unfortunately i have just sat through this one, i thought the buy back would provide more support that it did so stayed in.

I noticed that Salt has used the recent drop to top up another 5m shares (not sure if 'top up' is the right term for 5m shares)

[bull....]

http://www.interest.co.nz/insurance/...t-christchurch

an interesting read

[Baddarcy]

http://www.interest.co.nz/insurance/...t-christchurch

an interesting read

Yes it is, im a bit of a fan of stories with actual numbers in them, thou this one feelds a a little sensationalist on the intrepreation. I can't speak for IAG or Suncorp as i haven't done any research on them, but it does gloss over the fact that the $30m he is talking about Tower being up for is only if an event uses up all of Towers existing RI first.

It also glosses over the fact Tower has substantial reserves in excess of the RBNZ minimums that could be used to pay for that $30m, and as we have seen from the Canterbury Earthquakes, the claims are not settled in one year, so the $30m would be spread over a period of years.

The core facts are correct in that if there was another Canterbury Earthquakes sized event, Tower would possibly be up for $30m, but they can afford that.

[bull....]

wouldn't surprise me to see tower report a underlying profit but a loss after they account for Christchurch provisions, of course the longer it drags on the higher the probability even these provision increases will not be enough lucky for them they only have 5% to go unlike iag with something like 25%, dragging one s heels has proved costly for insurers

[tim23]

I reckon this was a good result, increased dividend too but no imputation credits yet, they must be in play anytime?

[Baddarcy]

Buy back scheduled to start next Wednesday, feels like it has been a long time coming !

[macduffy]

Last Friday's announcement of a partnership, of sorts, between TWR and TradeMe seems to have been greeted with a yawn. No significance - or an unknown quantity?

[Baddarcy]

Last Friday's announcement of a partnership, of sorts, between TWR and TradeMe seems to have been greeted with a yawn. No significance - or an unknown quantity?

Unknown quantity i think, Trade Me have been in the Life broking business for years (Life Direct) but this is their first foray into the General Insurance Market.

They obviously have a massive user base to market to and the web site looks fairly slick so i can't see it being a bad thing for Tower, but how much of a good thing it could be is essentially up to Trade me, as long as Trade me continue to push it to their users it will succeed.