TWR - Tower Insurance.

[traineeinvestor]

https://www.stuff.co.nz/business/102...ep-for-society

Don't know what to think really...

The only weasel in sight is the "journalist" who seems to think that people with lower risk properties and Tower shareholders should subsidise people with higher risk properties. Good move by Tower - I don't currently hold but am becoming interested.

[hogie]

The only weasel in sight is the "journalist" who seems to think that people with lower risk properties and Tower shareholders should subsidise people with higher risk properties. Good move by Tower - I don't currently hold but am becoming interested.

Totally true which is why I have purchased a relatively substantial share holding and now have almost all my insurances through Trademe/Tower (lowest insurance premiums in Auckland!) ... definitely a good move from a company that has really struggled to battle through the numerous natural disasters that have hit certain regions of NZ and the islands.

[winner69]

The only weasel in sight is the "journalist" who seems to think that people with lower risk properties and Tower shareholders should subsidise people with higher risk properties. Good move by Tower - I don't currently hold but am becoming interested.

Sounds like Auckland is becoming a higher risk area ....better up their premiums I think

[boysy]

well the 6 month result out tomorrow wonder if the stated turn around has finally come ....

[peat]

not a good actual result - caused by one offs though, so can we forgive?
Or will there just be different one offs next time.
Some companies are just like that huh?

[Balance]

not a good actual result - caused by one offs though, so can we forgive?
Or will there just be different one offs next time.
Some companies are just like that huh?

No surprises in the results - all the one-offs were announced to the market previously.

[trader_jackson]

Some were expecting a dividend this half, although seems the 'transformation' is well underway and showing promising signs.

[winner69]

Pack of bastards those guys at Tower ....must be one of the most hated industries in the country ...but besotted shareholders probably happy has
https://www.interest.co.nz/opinion/9...urance-premium

Can’t wait until Auckland premiums go up heaps as every time the wind blows trees fall over and when it rains it always seem to flood ......currently Auckland premiums being subsided by Wellington and other parts of the country

[boysy]

Seems to be a fairly effective tool at getting rid of high risk existing tower clients - one has to question how other insurers will calculate these parties premiums should they want cover. The question has to be how much new low risk business will tower need to write to offset these lost clients as a result ?

[traineeinvestor]

Pack of bastards those guys at Tower ....must be one of the most hated industries in the country ...but besotted shareholders probably happy has
https://www.interest.co.nz/opinion/9...urance-premium

Can’t wait until Auckland premiums go up heaps as every time the wind blows trees fall over and when it rains it always seem to flood ......currently Auckland premiums being subsided by Wellington and other parts of the country

No publicity is better than stuff like this. Sounds a lot like the Auckland City Council's annual spin on increasing rates by more than the rate of inflation every year (i.e. complete BS). TWR could cut some overheads by getting rid of the PR department

That said, TWR (and other insurers) should be using a risk based approach to determining premiums. Areas more likely to experience earthquakes should pay more than those which don't. Ditto floods, typhoons and stampeding livestock. Even those who are not shareholders have a vested interest in insurance companies making a decent profit so they can build up enough reserves to handle a spate of claims should a major disaster strike. Taking insurance from a company which can't absorb significant losses is no insurance at all.

Disclosure: none