TWR - Tower Insurance.

[winner69]

On a PE of 9.6-10.8 if fy expectations are met, not many companies this cheap on the NZX.

They could have atleast declared a 50% dividend, the balance sheet can clearly handle it. Might be reluctant to announce one before the new CEO begins.

Also the car refunds cost 6.8m if anyone was wondering (1.7 Timaru hailstorms )

PE around 10 seems fair enough for such a company

Quakes getting closer to big centers this week ...Levin not far away from Wellington hmmm

[Cadalac123]

Meet that NPAT guidance and there will be no reason for no dividend . The previous years they didn’t have a dividend the NPAT was negative year on year so not sure why It was a surprise

[macduffy]

Meet that NPAT guidance and there will be no reason for no dividend . The previous years they didn’t have a dividend the NPAT was negative year on year so not sure why It was a surprise

No, no surprise there. It pays for the financial sector to take heed of the RBNZ Governor's "advice".

[traineeinvestor]

revenue up 11%, Profit up 24% Portfolio growth of 11.9% projected to continue. Maybe that's the problem, if it were a gloomy outlook (e.g. AIR) the SP would just take off.

No 1st half divvy is understandable with the redundancies, a "possibility" of a 2nd half one.

While positive, operating cash flow didn't wasn't as strong as I would expect. Otherwise it looked like a decent result. Share price didn't move post announcement so in line with market expectations.

Disclosure: not held

[Jaa]

Job losses were inevitable after YOUI was merged in and customers migrated to the new self-serve platform. RBNZ strongly encouraging insurers to preserve capital so no chance of a dividend.

Amazing after many years of trying, they still haven't over provisioned for the Canterbury earthquakes, which still cost them $1.1m in 6 months.

Tower investors will have to wait another year (large claim events permitting) for our day or for the EQNZ recoveries claim.

[Leemsip]

Slightly better than my expectations below of $18m-$20m pretax, with a $22m pre tax and a $15m post tax profit. As per other posters a $30m full year post tax profit on the whole of company value of $269m is pretty good. Market hates it though. Contrary to all expectations no divi annoucement. I guess they are waiting to settle the EQC receivable before announcing a dividend and no guidance on when this might occur (now in the courts).

This share is killing me, good luck to all us holders

Im expecting a decent first half of 2020 with pre-tax profit of $18- 20m. Modelling this based on
- lower canty provision cost $1m,
- youi increase profit of $2m,
- large event in the pacific cost of $7m (probably overcooked this),
- lower claims in nz due to covid $1m upside,
- increase of 10% gross written premiums .
- increase in depreciation of $3.5m due to the new system and a mill or so of efficiencies due this as well.
- non-underlying nonsense of $2m (who knows)

Simplisticly setting up a full year of $40m before tax and $27m after tax - bang on guidance. This WILL mean a dividend announcement as the balance sheet is fine now! I expect them to be able to payout 70% (rather than 50%) due to the large non-cash costs now present in the P&L.

70% of $27m is $19m across 428m shares = 4.4c divi fully imputed.

Current share price is $0.62 so a net 7% return in an average year with 10% growth across the book.

[winner69]

Even more lower north island quakes

[850man]

If they continue with their current plan, workforce downsizing will have a positive effect on the cost line and benefit end of FY profit. Yeah there's always the possible impact of unexpected events but that's what insurance is all about, we know that already. Overall, what's not to like apart from no divvy just yet? You are right though Leemsip, the market doesn't like it. Have to bide our time a bit yet to prove them wrong.
Disc - hold a few

Slightly better than my expectations below of $18m-$20m pretax, with a $22m pre tax and a $15m post tax profit. As per other posters a $30m full year post tax profit on the whole of company value of $269m is pretty good. Market hates it though. Contrary to all expectations no divi annoucement. I guess they are waiting to settle the EQC receivable before announcing a dividend and no guidance on when this might occur (now in the courts).

This share is killing me, good luck to all us holders

[winner69]

These arguments could come to NZ

Hope Tower don’t have too many such policies

https://www.smh.com.au/business/bank...05-p55000.html

[Marilyn Munroe]

These arguments could come to NZ

Hope Tower don’t have too many such policies

https://www.smh.com.au/business/bank...05-p55000.html

It is usual for business interruption insurance to mirror material damage cover. Thus if you had fire cover for your building and contents this risk would also be covered in the business interruption cover.

I would expect pandemic cover in business interruption insurance to be the exception rather than the rule.

Boop boop de do
Marilyn