TWR - Tower Insurance.

[850man]

https://www.stuff.co.nz/business/mon...-customer-says

Tower called out for doing something that all the other major insurers also do (AA, AMI, State)

In reality, their premiums are very competitive, customer service is good, online platform is very good and that post Covid premium payback was above and beyond all the others. My only complaint is that the $7.5M of payback would have felt a lot better as a divvy for shareholders however that's not me looking at the longer term objective of that gesture now is it.

Disc: Customer with a small holding, still hopeful.

[Filthy]

Tower called out for doing something that all the other major insurers also do (AA, AMI, State)

In reality, their premiums are very competitive, customer service is good, online platform is very good and that post Covid premium payback was above and beyond all the others. My only complaint is that the $7.5M of payback would have felt a lot better as a divvy for shareholders however that's not me looking at the longer term objective of that gesture now is it.

Disc: Customer with a small holding, still hopeful.

I've forgotten what a TWR divvy even looks like 850!... haha
To be fair though, I actually think it (the premium refund) was the right thing to do. Loads of overseas insurers in the UK did the same, as did AA insurance here. Great way to make sure your customer base stays loyal.
I wish they had of used it more positively in a BIG marketing campaign though!! (which they may well have done, but I cant recall seeing anything??) - so a huge opportunity lost there.
Could have been really good leverage to steal some punters from competitors and further grow the customer base. If your going to be the good guy, make sure the world knows about it eh.

Very, very, disappointed we are not getting any updates on the EQC claim. Totally appreciate that they might not be able to comment on the process etc, but anything is better than nothing - even if it is just to say it is still ongoing, blah blah, and it is expected to conclude by 'X' date in 2049.... (which might not be too far off at this rate! - & the market agrees.... as it hasn't priced anything in!). I would be super happy just to get half of it or two-thirds back now (in a deal) rather than wait for a long legal battle to conclude virtually the same thing... less the expensive lawyers fees. The mind boggles.

[850man]

http://nzx-prod-s7fsd7f98s.s3-websit...833/333360.pdf

9M or so shares hoovered up by a few companies over the last few months.

[winner69]

Hope Tower not exposed to many claims in Napier

Don’t really want to have another ‘event’

[Dlownz]

Hope Tower not exposed to many claims in Napier

Don’t really want to have another ‘event’

I live in Napier
Would you believe I had shares and sold them all as soon as I got home on the Monday as I saw the waters coming up.
Didn't want to risk it.
Not sure how many would have tower for insurance they are about 50 a month more expensive than state.

[hogie]

I live in Napier
Would you believe I had shares and sold them all as soon as I got home on the Monday as I saw the waters coming up.
Didn't want to risk it.
Not sure how many would have tower for insurance they are about 50 a month more expensive than state.

Napier is a high risk area and is priced accordingly ... hopefully that results in less customers in that area

[850man]

Doesn't Tower's FY end 30 Sept? If so numbers are all in before the Napier floods. One should hope though that they make allowance for some claims during the FY. What will be most interesting is how much of the money they are owed from EQC have they been able to get.

[seadog]

I live in Napier
Would you believe I had shares and sold them all as soon as I got home on the Monday as I saw the waters coming up.
Didn't want to risk it.
Not sure how many would have tower for insurance they are about 50 a month more expensive than state.

I also live in Napier and sold out the the Friday before the floods...just pure luck. Had held TWR for over a year I still believe they have potential just better options elsewhere.

I was at the local dump today and it was mobbed.... the claims will unfortunately be substantial, almost everybody has a story to tell. Civil defence and the authorities managed the situation very well.

[Poet]

I see that Suncorp has settled its outstanding claim with EQC relating to allocation of earthquake repairs. Suncorp was claiming $100m but settled to avoid expensive litigation. Amount of settlement is commercially sensitive.
Is Tower close to settlement? Will we hear at results time next week?
GLTAH

[Southern Lad]

The RBNZ has written to Insurers on 11 November advising of a relaxation on earlier guidance that they should not pay dividends until the economic impact of COVID-19 became clearer:

https://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Policy-development/Banks/Review-capital-adequacy-framework-for-registered-banks/Letter%20to%20insurers%20re%20Dividends.pdf?revisi on=f6db7d62-7ace-4b45-a083-6052f8b0a6d3&la=en

Does this improve the chances that TWR will finally announce a dividend when they release their annual results on 25 November? In the FY 20 half year profit announcement, the then RBNZ stance that Insurers should protect solvency positions and protect capital was cited as a reason why no interim dividend was declared.

The Lake Ohau fire and losses from the Napier weather event have hit post year end on 30 September, however if the costs to TWR are significant, this may persuade the Directors to be more cautious than they may have otherwise been. Guess we will know next week!