Tower trading update
1
9 February 2017
Market Information Company Announcements Office
NZX Limited ASX Limited
Level 1, NZX Centre Exchange Centre
11 Cable Street Level 6, 20 Bridge Street
Wellington Sydney NSW 2000
New Zealand Australia
Tower trading update
Tower’s results for the three months ending 31 December 2016 remain in line with the company’s
update on 29 November 2016.
Underlying profit after tax is in line with budget expectations excluding the impact of Kaikoura.
Gross Written Premium (GWP) was stable at $77.1 million for the three months ended 31
December 2016 (Q1 2016: $78.4 million).
Tower continues to advance its strategic transformation as outlined on 29 November 2016:
• Launch of the partnership with Air New Zealand Airpoints has been promising with
increased customer inquiries since launch in mid-January
• Tower is now online with all products, early indications are positive with website traffic
exceeding expectations
• The scoping phase of the IT simplification programme is near finalisation and the costs
and benefits of the programme remain as expected
• Since announcing on 29 November 2016 its intention to create RunOff Co, Tower has
progressed planning for separation with the RBNZ and the independent actuary.
Canterbury continues to present a complex and difficult situation for all insurers, claims costs
continue to develop caused by additional 'overcap' claims being received from EQC and growth
in the level of litigation and customer disputes. Tower’s appointed actuary, Deloitte, is due to
release their quarterly valuation in mid-March.
Tower has further advanced its recovery actions against both Peak Re and EQC and the Tower
Board remains confident that it will recover these receivables.
A further update will be provided with the half year results in late May.
ENDS
Michael Stiassny
Chairman
TOWER Limited
ARBN 088 481 234 Incorporated in New Zealand
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- PCT — Precinct Properties New Zealand Limited: Solid profit of $39.1 million and progresses developments2017-02-15
“5 OFFICE MARKET UPDATE The overall Auckland CBD office vacancy rate remains at historically low levels. The Auckland prime CBD office vacancy rate decreased during the six months to December 2016, down to 2.6% (June 2016: 3.3%). The Wellington prime CBD office vacancy ra…”
- SPK — Spark New Zealand Limited: Target Company Statement2017-03-22
“10 • As announced on 28 February 2017, TeamTalk has agreed the essential terms of a new 3-year banking facility to March 2020 with Westpac New Zealand Limited (“Westpac”). The radio and broadband divisions are performing well and in the six months to December 2016 increase…”