TWR - Tower Insurance.

[Independent Observer AUNZ]

Considering dip my paw into the waters again:
First time I made lots of money;
Second time I lost some;
Third time ???.

Third time's a charm.

[King1212]

When the last day to pay TJ?

[Vaygor1]

When the last day to pay TJ?

Straight from my email confirmation....

"IMPORTANT:
Please check with your bank to ensure the payment is made in sufficient time for it to be received in Computershare’s bank account in cleared funds by 7:00pm (New Zealand time) on 15 October 2019.

If your payment is received for less than the amount paid due to bank fees being deducted from your payment, you will not receive all of the New Shares you have applied for. The number of New Shares allotted to you will be calculated based on the payment received. Any payment that is received and unable to be identified before the closing date, will be refunded without interest.

The registrar will endeavour to use all methods available to identify any such payments prior to actioning the refund. If you want to utilise this service and have any questions, please contact Computershare at tower@computershare.co.nz or 0800 222 065."

[Independent Observer AUNZ]

Just a reminder that rights trading is about to clsoe this afternoon.

[Leemsip]

huge tower fan. Currently 1/3 of my (not very big) portfolio and looking for $1 share price this year.

Looking to talk my book here and bring the forum on board.

I have done a quick and dirty comparison of Tower to IAG (big Aussie owned insurer) and present metrics below. The format sucks sorry.

	Tower	IAG
Rough Solvency Ratio with Youi additions + cap raise	163%	163%	spooky
Rough Solvency assuming no EQC payout of $50m	119%		still not awful.
GWP (millions)	170	12,000
Net profit (millions)	28	1,076
Net profit per $GWP	0.16	0.09	Tower massively more profitable per $ of GWP basis. Need to confirm this.
Growth YoY	8.90%	3.10%
PE	9.7	20.91
Market cap (millions)	287	17,610

So tower is actually pretty well capitalised now, assuming there is a net $50m return on the EQC receivable, it will be broadly in line with IAG. If no return at all from EQC (deemed unlikely) then it will still be significantly over the RBNZ minimum requirements, including the additional requirements for the Youi premiums.

Tower makes vastly more net profit per $ of written premium than IAG (almost double by my calcs). Interested if someone can show this isnt the case. I simply took net profit / GWP as per the two reports below. Hope I havent made a huge mistake here.
https://www.iag.com.au/sites/default...19-Results.pdf
https://www.tower.co.nz/investor-centre/reports 2019 half year report


Tower growing extremely strongly and insurance is somewhat recession proof?.

Tower on half the PE

Bain capital hold 20% of Tower and may move at some point.

Whats not to like?

[Balance]

huge tower fan. Currently 1/3 of my (not very big) portfolio and looking for $1 share price this year.

Looking to talk my book here and bring the forum on board.

Tower growing extremely strongly and insurance is somewhat recession proof?.

Tower on half the PE

Bain capital hold 20% of Tower and may move at some point.

Whats not to like?

You convinced me.

I am in for more.

[Jaa]

Congratulations to Tower on running a fair, rapid and successful capital raising for all shareholders. They have shown others (cough EBOS, Turners) how it should be done. Whole process from start to finish took less than a month, so lets not have speed used as an excuse to screw small shareholders via placements or SPPs again.

On a side note, anyone care to explain how Westpac increased their stake from 5.44% to 6.5% paying only 19.5 cents a share?!?

Transaction Type: On-market sales and purchases
Period: 21/9/2017 to 21/10/2019
Shares: 12,741,133
Consideration: $2,484,516.88

Average price per share: 2,484,516.88 / 12,741,133 = 19.5 cents a share

Share price range in this period was between 66 and 70 cents and the rights price was 56 cents.

[winner69]

Congratulations to Tower on running a fair, rapid and successful capital raising for all shareholders. They have shown others (cough EBOS, Turners) how it should be done. Whole process from start to finish took less than a month, so lets not have speed used as an excuse to screw small shareholders via placements or SPPs again.

On a side note, anyone care to explain how Westpac increased their stake from 5.44% to 6.5% paying only 19.5 cents a share?!?

Transaction Type: On-market sales and purchases
Period: 21/9/2017 to 21/10/2019
Shares: 12,741,133
Consideration: $2,484,516.88

Average price per share: 2,484,516.88 / 12,741,133 = 19.5 cents a share

Share price range in this period was between 66 and 70 cents and the rights price was 56 cents.

That’s the totals for TWO plus of transactions.

ASX disclosure lists all the trades. Sold quite a few at high prices

[Jaa]

That’s the totals for TWO plus of transactions.

ASX disclosure lists all the trades. Sold quite a few at high prices

Thanks Winner, didn't realise Tower was also listed on the ASX. Had assumed there was offsetting trades hidden in the numbers, some nice trading by Westpac there!

There is also an additional disclosure from Westpac on the ASX that they have increased their stake to 8.13% but it is not on the NZX as of posting.

Why do we tolerate such crap disclosure in NZ? Should copy the ASX requirements for dual listed shares and cut down on the double work.

[Jaa]

Good to see all Tower directors taking up their rights allocations, though surprising how few they own (except Michael Stiassny).

Director Marcus Nagel took up his rights to take his grand total to 62 shares!