TWR - Tower Insurance.

[Filthy]

disc. non-holder and not looking to buy

[Scrunch]

I am in Wellington and TWR recently offered the best solution & best value for money for our place. Sign-up & Quote process was all online and they were great to deal with. Broker & competitors all came-up about $200+pa more expensive for a worse offering, policy and cover. Having said that, we are on a hill (bedrock) overlooking the water with no risk (touch-wood) from liquefaction / storm damage / sea / flooding. I would guess it would be a lot different it we were located elsewhere i.e. some friends of ours in Petone had their premiums almost double (ouch). Car also ended up with trademe, which is underwritten by TWR. Again, simple online process and good value when I did the comparison.

I was recently looking for insurance quotes for a single story house on the flat in Lower Hutt. The primary natural hazard risk would be earthquake damage. Vero came in better than others including State and Tower. I don't see this as a particular negative for Tower because they are actively trying to orientate their portfolio away from perceived higher earthquake risk locations like the Wellington region. If I was in an area like Hamilton or Auckland and they weren't price competitive I'd be concerned.

[Marilyn Munroe]

From the interest.co.nz web site

"Suncorp Group today announced net profit after tax (NPAT) of A $250 million for the six months to 31 December 2018. The New Zealand business achieved NPAT of NZ$120 million, up +79% on the prior corresponding period."

Suncorp in NZ trades under the brands Vero, AA Insurance and ANZ Insurance.

Balance will be wondering whether he should chill some bubbly for the TWR announcement.

Boop boop de do
Marilyn

[Balance]

From the interest.co.nz web site

"Suncorp Group today announced net profit after tax (NPAT) of A $250 million for the six months to 31 December 2018. The New Zealand business achieved NPAT of NZ$120 million, up +79% on the prior corresponding period."

Suncorp in NZ trades under the brands Vero, AA Insurance and ANZ Insurance.

Balance will be wondering whether he should chill some bubbly for the TWR announcement.

Boop boop de do
Marilyn

TWR should announce a good result indeed, given how the other insurance companies have creamed huge profit growth from little ole NZ.

Reporting date is a long way away though - May so a lot can happen in between.

Here's thinking that Bain will want to strike before the results come out!

[winner69]

Pretty good but no doubt no change to guidance is a bit of a disappointment to sum.

http://nzx-prod-s7fsd7f98s.s3-websit...751/295164.pdf

That $10m they mention ...does that mean if no disasters they can add that back to profit?

[Balance]

Pretty good but no doubt no change to guidance is a bit of a disappointment to sum.

http://nzx-prod-s7fsd7f98s.s3-websit...751/295164.pdf

That $10m they mention ...does that mean if no disasters they can add that back to profit?

Assume that must be the case. Treat any upside or downside from that provision as an abnormal?

All good and steady as she goes sort of business update.

Revenues are growing, expenses are under control, claims ratio are down and on track to delivering NPAT (IN EXCESS) of $22m.

At this rate, better that Bain not take the company over!

[boysy]

No news is good news re the latest market update I guess .... looking very cheap if they hit that $22m NPAT and recommence paging Divis .....

[trader_jackson]

At first, I was a bit disappointed, but then I saw guidance of $22m+ underlying, and after considering all the considerations, factoring in all the factors, and weighing up all the weightings, I thought there is a good chance NPAT will be pretty ok... say $17m... of which, say 60%, will be paid out in dividends... about 3 cents a share - 4% isn't great, but given TWR is a growth company (or this is the way management see it), that ain't to bad I suppose

4 months on, if NPAT is in excess of $17m for FY19, that will be a beat for me.
With TWR basically being flat since August 2017 (after the takeover bid was cancelled, and after the bigly capital raise was announced), market clearly not to sure... I'd think with a solid result and guidance for double digit growth, TWR should climb back into the mid 80's

[boysy]

Divi yield could beat most expectations particularly if they surprise to the upside. Let’s hope they don’t have to use all that reinsurance they have available and the weather gods play nice for the remainder of the FY.

[Scrunch]

Nice jump over the last few days. After trading at 75c or less all of 2019 twr closed at 76c today. This took out all the listed sellers except someone hopeful at $1.40 I wonder if this is simply from speculation of a good result or news leakage around some event like a takeover?