TWR - Tower Insurance.

[Independent Observer AUNZ]

EOFY approaches - the weather overall seems to have held off fairly well which should support some extra bump to profit. Not sure what the Pacific is doing though, but I'm not aware of any big hits. What are expectations for divvies?

[trader_jackson]

I am surprised at the lack of share price positivity despite results being pretty positive (and outlook positive as well)... I thought we'd easily be in the 80's now, I reckon we'll see a 4 ish cent dividend arriving in less than 5 months time (not a bad yield at all)

Nobody seems to care that TWR will likely smash it out the park this FY + provide a nice net yield of about 5.4% (pretty high in this environment)... in fact share price is actually down 1.3% on this time last year (so NZX's website says)
Intriguing.

[Independent Observer AUNZ]

Nobody seems to care that TWR will likely smash it out the park this FY + provide a nice net yield of about 5.4% (pretty high in this environment)... in fact share price is actually down 1.3% on this time last year (so NZX's website says)
Intriguing.

There's still plenty of uncertainty there - the regulators are doing funny things, Tower have a big system replacement that's midstream, and even though the Canterbury tail is getting small the EQC still seems to find ways to create uncertainty for the private insurers. They also have Bain sitting there at 19.9% - who knows what their strategy is and that's possibly causing some gun shyness from the bigger guys to adjust their holdings. Overall it is a really static trade-wise; I think there may just be lots of long-term holders who are waiting for the last few bad years to even out and the non-holders only see the potential speed humps I mentioned above.

[Scrunch]

Hold pretty dam good yesterday....buyers are starting to buy in..expecting great result with at least 4c dividend...

If they are going to distribute circa $10m aka 4c div, I'd prefer if some of this was via a share buyback because with no imputation credits at present, one third of the div goes directly in RWT for those on a 33% tax rate.

It's a little better for companies as only 28% is lost, but still not great. I'm guessing this is one of several reasons behind the low div rates for most retirement companies as they also have little or no imputation credits (but for different reasons)

[trader_jackson]

https://www.nzx.com/announcements/341433

Interesting announcement

[winner69]

https://www.nzx.com/announcements/341433

Interesting announcement

Some more cheap shares for you t_j

You must live all these Capital raises you participate in.

[winner69]

I would have thought that many of Youi customers were previous dissatisfied Tower ones

But Tower says this is growth so it must be good

Disc. Don’t know much about Youi but their advertising seems to suggest cheap(er) insurance

[trader_jackson]

I would have thought that many of Youi customers were previous dissatisfied Tower ones

But Tower says this is growth so it must be good

Disc. Don’t know much about Youi but their advertising seems to suggest cheap(er) insurance

No, they are all the dissatisfied AMI customers winner

No dividend this year will annoy some, but great growth in profits and GWP... and rock solid balance sheet.

[Vaygor1]

https://www.nzx.com/announcements/341433

Interesting announcement

Key takeouts:

Tower to buy Youi for $13M
No dividend as a result
Capital Raise of $47.2M to occur as part of the arrangement
Issue price of NZ$0.56 per share
Entitled to 1 share for every 4 shares held
Increase of Full Year Underlying NPAT guidance from $26M+ to $28M
Tower to pursue dispute with EQC if needed (likely)
Plenty of solvency up its sleeve
Solid growth continues, claims ratio favourable


Disc: Holding

[King1212]

Insurance companies are all getting smarter..with high excess fees and premium kept raising every year...all kiwis must have insurance..it is on their DNA