Tower Limited Half Year Report 2019

Tower Limited
2019
half year
report

01
Tower Management Review
Tower Limited Interim Financial Statements
Independent Review Report
Tower Directory
Tower Limited
report
For the half year ended
31 March 2019
2
11
34
36

02
8SȅIV 1MQMXIH half year report 2019
Features of half year 2019
• Transformation of business progressing
well with solid growth driving $23.5m
turnaround
• Reported half year profit of $11.9 million
after tax
·$19.4m underlying profit after tax, a
$12.1m improvement on H1 18
· Adjustments to CEQ provisions of
$4.7m after tax
• Solid GWP growth in the core New
Zealand portfolio
1
of 8.9% on prior year,
including volume growth, with 9,383 risks
added
• Significant improvement in claims
costs due to underwriting and pricing
enhancements, with claims expense ratio
reducing to 44.5% in H1 19, down from
55.5% in H1 18
• Pacific business has returned to historic
norms with reduction in claims cost
achieved and return to profitable growth
• Major technology upgrade set to launch
in coming weeks, with majority of work
for first phase complete and now in final
stages of testing
• Continued positive progress closing
Canterbury earthquake claims, with open
claims down to 132 on March 31 2019,
from 163 on October 1 2018
Half year summary
The first half of the 2019 Financial Year has
seen Tower return to profit, evidence that
Tower’s strategy to fix and grow the business
is paying off.
Tower’s reported profit after tax of $11.9 million
for the half year ended 31 March 2019 (H1 19),
demonstrates a turnaround of $23.5 million
from the half year ended 31 March 2018 (H1
18).
This result is the culmination of four years’
work to turnaround Tower by fixing the
foundations and challenging industry norms.
Simplifying and improving all aspects of our
business to differentiate the company has
led to strong growth in GWP and customer
numbers, reduced claims costs and
contained expenses.
The continued focus on customers and
improvements in digital channels added
9,383 new risks to Tower’s core New Zealand
portfolio, seeing core NZ GWP for the year
grow 8.9% contributing to total GWP of $169.7
million.
Implementation of risk-based pricing along
with improved underwriting and pricing
activity has significantly reduced claims costs.
Over the last half, the claims ratio has reduced
by 11 points to 44.5%, from 55.5% in H1 18.
Our Pacific business has rebounded due to
solid growth, improved underwriting and a
benign weather environment. The claims
ratio has reduced to 27.8% for H1 19.
Tower’s Pacific premium has also returned
to historic norms, and along with the
improvement in claims costs, has resulted in
a $4m improvement in underlying profit to
$4.2 million.
While making necessary and significant
investment in our business, a continued
Tower Management Review
Half year to 31 March 2019
1. Core NZ portfolio is the NZ business, excluding the
ANZ and Kiwibank legacy portfolio.

03
focus on costs allowed us to maintain our
expense ratio at 38.7%. This investment will
accelerate our growth and the first phase of
our major technology upgrade will launch in
the coming weeks.
Tower continues to settle claims in
Canterbury, reducing open claims by 31,
to 132 open claims. The CEQ portfolio is
performing well and in line with expectations,
with the exception of new over-cap claims
from the EQC, which has resulted in a $4.7m
after tax impact on profit.
Tower’s transformation is progressing well.
These results demonstrate the Tower Board
and management team’s long held belief
that Tower offers an exciting platform for
growth. The next phase of our transformation
strategy is to leverage our exciting
proposition to deliver growth and realise
Tower’s full potential.
Group profit summary (NZ$M)
NZ$mH1 19H1 18Change
Gross written
premium
169.7161.08.7
Gross earned
premium
168.7159.69.1
Reinsurance expense(26.5)(25.5)(1.0)
Net earned premium142.2 134.18.1
Net claims expense(63.1)(67.9)4.8
Large events claims
expense
(0.2)(6.5)6.3
Management and
sales expenses
(55.1)(52.1)(2.9)
Underwriting profit23.97.6 16.3
Investment revenue
and other revenue
3.43.8(0.4)
Financing costs(0.2)(0.4)0.2
Underlying profit
before tax
27.1 11.0 16.1
Income tax expense(7.7)(3.7)(4.0)
Underlying profit
after tax
19.47.3 12.1
PeakRe settlement0.0(16.2)16.2
Canterbury impact(4.7)(2.3)(2.4)
Foreign tax credits
write-off
(1.0)0.0(1.0)
Simplification
programme opex
(0.4)0.0(0.4)
Other non-underlying
costs
(1.4)(0.4)(1.0)
Reported profit/
(loss) after tax
11.9(11.6)23.5

HY FY19
GWP
HY FY18
GWP
core
NZ Rate
core
NZ Volume
non-core
NZ Rate
non-core
NZ Volume
Pacific
Growth
Growth in GWP (NZ$m)
161.0
169.7
0.3
2.3
3.6
3.1
5.6
04
Tower Limited half year report 2019
Transformation progressing well
Tower holds a unique position in the New
Zealand insurance market, with a solid
existing customer base and a clear strategic
plan for growth by delivering a compelling,
challenger proposition to the market. A
belief that customers deserve better will see
Tower turn industry norms upside down and
revolutionise the way customers interact with
the company.
The achievements to date show that there
is a powerful platform for future growth with
progress seen in crucial areas:
• Focus on customers has delivered strong
growth
• Improved NZ claims ratio
• Improvements in the Pacific
• Management expenses controlled while
investing and building capability
• Major technology upgrade set to launch
Focus on customers
driving growth
Overview
• Solid GWP growth of 8.9% in core NZ
portfolio with total GWP growing at 5.4%
• Growth in risks in core New Zealand book
increased significantly by 9,383
• 46% of new business sales online in March
2019, up from less than 10% in FY16
• New approach to pricing combined with
simple and easy products driving customer
growth and improved mix
Tower continues to offer customers simpler
insurance at a fair price. Through this
approach we are realising the potential
that exists in the Tower brand, with more
customers choosing to insure with Tower.
Core GWP is growing above industry
averages, with GWP in:
• NZ House growing 7.8%, with the majority
being attributable to rating
• NZ Contents growing 2.9% split between
rating and volume, and
• NZ Motor growing 12.3%, with the majority
being attributable to volume
We continue to see solid growth through
our digital channels, with almost 50% of new
business sales online in March 2019, up
from 39% in March 2018. Combined with the
fact that 18% of claims were lodged online
in March 2019, this is further proof that our
investment in digital channels is warranted.

Change in
product mix
vs. H1 18
H1 18
reserving
changes
H1 18 adjusted
for claims
reserving and
mix
Benign
large events
Lower
house
Lower
contents
Higher
motor
Lower
commercial
H1 19 claims
ratio, including
large events
H1 18 claims
ratio, including
large events
Change in Claims Ratio vs. Prior Year
55.8%
54.1%
47.4%
0.6%
0.6%
2.3%
2.1%
1.3%0.9%
4.5%
05
In the Pacific, Tonga, Samoa, Vanuatu,
American Samoa and the Cook Islands have
returned to growth thanks to additional
underwriting, pricing and marketing support
for local teams. Following a number of years
of remediation, we are now well placed for
sustainable growth in the region.
Tower’s growth is being achieved through a
combination of factors, including:
• a new, fairer risk-based approach to pricing
and simpler policy documents
• constant refinement of underwriting criteria
enabling more granular assessment
• attracting new, profitable customers with
improved and targeted offerings
• the creation of the Pacific operations
centre, centralising back office functions,
ensuring that the pricing and underwriting
approach is consistent and minimises
claims leakage.
Improved NZ claims ratio
Overview
• Underwriting and pricing initiatives have
delivered significant improvements
• Core insurance activity is offsetting inflation
New Zealand claims expenses have
decreased significantly in the first half of
the 2019 financial year with a number of
underwriting and pricing initiatives helping to
offset inflation.
A one-off adjustment relating to the 2017
financial year increased our base claims ratio
in H1 18, this was a one-off issue for FY2018.
While in prior years, we’ve borne the brunt
of severe weather, this year we’ve benefited
from improved weather conditions with no
large events to date. This has resulted in a
4.5% decrease in the NZ claims ratio.
Tower’s new, simpler products and
fairer, risk-based pricing approach have
contributed to a reduction in NZ House and
Contents claim frequency. Following a period
in 2017 and 2018 of a higher number of large
house fires, trends have returned to more
normalised levels.
Good weather has seen more people out
exploring New Zealand and as a result, in our
motor portfolio, there has been an increase
in claims frequency. This is mainly due to
more windscreen damage as a result of
increased traffic and roadworks around the
country.
While this result is pleasing and significant
improvements have been delivered, there is
a continuing focus on refining products and
pricing approaches to ensure we continue
addressing claims costs.

06
8SȅIV 1MQMXIH half year report 2019
Improvements in the Pacific
Overview
• Improved pricing, underwriting and risk
selection is delivering results
• Vanuatu, Tonga, Samoa, American Samoa
and the Cook Islands have returned to
growth
• Key markets of Papua New Guinea and
Fiji returning to profitability following
completion of remediation activities
• Benign weather has contributed to
improvement
Tower’s Pacific business remains strong and
after being impacted by a number of severe
weather events over the past few years,
contributions have now returned to historic
levels.
Vanuatu, Tonga, Samoa, American Samoa
and the Cook Islands have returned to
growth thanks to additional underwriting,
pricing and marketing support for local
teams.
Remediation of the Papua New Guinea
portfolio to reduce risk and exposure is now
complete and this portfolio is returning to
profitability.
H1 18 claims
ratio, including
large events
NPI, excluding
cyclones
Benign large
events
PNG, excluding
cyclones
Change in mixFiji, excluding
cyclones
Other
countries
H1 19 claims
ratio, including
large events
53.8%
27.8%
10.0%
5.0%
2.3%
1.8%
1.5%
5.5%
Change in Claims Ratio vs. Prior Year
Fiji is another key market that has seen
improved profitability thanks to the continued
repricing of the Fiji motor book. Although
growth in Fiji is slightly softer than we have
previously seen, this was an important step
to ensure future growth remains sustainable.
Improvements in claims costs have been
delivered through targeted underwriting
and pricing initiatives across key markets,
and, combined with a benign weather
environment, have resulted in a 26%
decrease in our Pacific claims ratio.
The recently launched centralised operation
centre in the Pacific has helped bring greater
discipline and consistency across the region
ensuring growth is within our risk appetite.
We remain confident that there is strong
growth potential in our Pacific markets and
that it will continue to make a significant
contribution to Tower in the coming years.

07
Management expenses
controlled while investing
and building capability
Achievements
• Management expense ratio stable while
investment is made in new platform
• Additional spend directed towards growth
and reducing risk
Tower has stabilised its costs, despite
continuing to significantly invest. The
management expense ratio stabilising at
38.7% in H1 19, compared to 39% in FY18.
Investment is being made to grow the
business, as well as backfilling project roles,
and working to mitigate any risks associated
with the implementation of the new
technology platform.
Tower anticipates a slight uplift in
management expenses in the second half
due to the increased focus on the migration
of customers onto the new platform.
However, once fully operational, expenses
will reduce significantly.
Major technology
upgrade underway
The key to accelerating Tower’s
transformation is a new IT platform that
enables the simplification of products and
processes. This will remove complexity for
frontline teams and enable the delivery of
Tower’s strategy.
Combined with Tower’s push to move 50
- 70% of all transactions online, removing
complexity from the business will deliver
significant cost savings and productivity
gains.
A phased implementation approach has
been developed to mitigate risk and
minimise any impact on customers. The
launch of the first phase will occur in the
coming weeks, before the end of first half of
the 2019 calendar year.
Development and build of phase one is
complete with the final stages of testing
underway. The new system will be deployed
through phone channels first, followed
closely by digital channels. Completion
of phase one will enable the sale of new
simplified products to customers and is the
core foundation piece of this programme.
Delivery of phase two components will occur
in the second half of the 2019 calendar year
and includes:
1. Rationalisation of products
2. Commencing the 12 month migration of
existing customers to the new platform
3. Launching a customer self-service portal,
allowing customers to manage their
insurance online
4. Implementing streamlined claims
management modules
Moving hundreds of thousands of customers
to a core set of just 12 products will deliver
significant benefits to our customers and
efficiencies in our business. A migration
of this size can pose risk if not properly
managed and there is a stringent focus on
managing and retaining customers through
the change to minimise this risk.
Costs for the programme are developing in
line with previously advised amounts and at
this stage, there are no material changes to
the estimated total cost.
Key benefits to be seen from Tower’s new IT
platform include the ability to:
• Create and deliver a unique customer
experience
• Quickly deliver simple, customer focussed
products
• Target specific, profitable customer
segments through granular, and
automated pricing and underwriting

08
8SȅIV 1MQMXIH half year report 2019
NZ$mMar-19Sep-18Mar-18
Case estimates29.737.448.0
IBNR/IBNER
1
20.321.422.0
Risk margin9.09.010.8
Additional risk
margin
5.05.010.0
Actuarial provisions34.335.442.8
Gross outstanding
claims
64.072.990.8
Ratio of provisions
to case estimates
2
115%95%89%
1. IBNR (“Incurred but not reported”) / IBNER (“Incurred
but not enough reported”) includes claims handling
expenses
2. Ratio of IBNR / IBNER plus risk margin to case
estimates
• Charge more accurate premiums through
improved access to, and use of, internal
and external data
• Easily trial new products and pricing
• Rationalise products and reduce claims
costs by improving the customer claims
journey and overall claims management
• Significantly reduce our cost base and
realise large productivity gains by moving
low value transactions online
• Add value through improved employee
engagement
Tower’s approach to implementing this new
IT platform is designed to deliver on a dual
purpose – accelerate transformation and
realise shareholder value.
Robust governance controls are in place for
this programme, with a focus on managing
delivery risk and cost trade-off. It is expected
that benefits will start being realised over
the 2020 financial year, with a step change
expected as the customer migration is
finalised and existing legacy systems
decommissioned.
Tower provisions to the 75th percentile for all
claims. For CEQ provisions that increases to
just above the 80th percentile with the $5m
additional risk margin.
Canterbury update
The CEQ portfolio is performing well and in
line with expectations, with the exception of
new over-cap claims from the EQC.
Open litigated claims are settling favourably
and there has been a considerable reduction
in new litigated claims. Tower’s non-
litigated claims are also settling in line with
expectations.
In the past six months 65 claims have been
closed, while 24 completely new over-cap
claims from the EQC have been received.
While progress continues to be made in
closing claims in Canterbury, the continued
receipt of over-cap claims from the EQC is
frustrating and has hampered efforts to close
out claims once and for all.
It is not Tower’s role – nor its shareholders’
responsibility – to resolve and pay
for situations arising from EQC’s past
incompetence and the negligence of its
repair providers.
So while Tower will continue to treat
customers fairly, it will now seek to recoup
any costs incurred from settling over-cap
claims from EQC where past incompetence
and negligence has contributed to the claim
going over-cap.
As a result of new over-cap claims from the
EQC, Tower has increased provisions for the
potential receipt of further over-caps. Further
increases to provisions resulted in a $4.7m
after-tax P&L impact and relative to case
estimates, provisions now sit at 115%.

39
25
50
59
25
28
45
50
50
58
56
31-Mar-1831-Mar-1930-Sep-18
5
09
Solvency position
Tower holds significant capital over and
above the minimum regulatory requirement.
As at 31 March 2019, Tower Insurance
Limited held approximately $95 million of
solvency margin, $45 million above RBNZ
requirements and equivalent to 271% of
minimum solvency capital. An additional $5
million in corporate cash was also held by
Tower Limited as at 31 March 2019.
Tower Limited has negotiated a new cash
advance facility, maturing in March 2023,
and will utilise this facility to fund remaining
IT investment
Outlook
Tower is focussed on progressing
transformation initiatives that will continue to
accelerate momentum and deliver long-
term shareholder value.
Tower is confident in the strength of
its strategy and the performance of
its underlying business. Following the
pleasing performance in the first half, Tower
increased its one-off guidance for FY19, to an
underlying NPAT in excess of $26 million.
This includes the following assumptions:
• A $5m allowance for severe weather and
large events in the second half
• Loss ratios will return to more normalised
levels in the second half as we enter the
winter storm period
• A minor uplift in management expenses as
our transformation activity culminates.
As previously advised, no dividend will be
paid in the first half of the financial year. The
Board’s intention is to pay between 50% and
70% of second half 2019 NPAT, if prudent to
do so in the circumstance.
Tower’s reported profit demonstrates the
strength and opportunity that exists in the
business and the strategic plan that will
create a challenger brand that delivers
significant long-term value.
Tower Insurance Limited
Solvency Position Plus Net Corporate Cash
(NZ$M)
Net cash held in corporate
TIL’s solvency margin above RBNZ minimum
TIL’s RBNZ minimum solvency margin
TIL’s MSC

10
8SȅIV 1MQMXIH half year report 2019

11
Tower Limited
Interim Financial
Statements and
Independent
Review Report
For the half year ended
31 March 2019
Consolidated Income Statement 12
Consolidated Statement of Comprehensive Income 13
Consolidated Balance Sheet 14
Consolidated Statement of Changes in Equity 15
Consolidated Statement of Cash Flows 16
Notes to the Interim Financial Statements 17-33
Independent Review Report 34-35

12
8SȅIV 1MQMXIH half year report 2019
The above statement should be read in conjunction with the accompanying notes.
Tower Limited
Consolidated Income Statement
For the half year ended 31 March 2019
FOR THE HALF YEAR ENDED
NOTE
31 MARCH 2019
UNAUDITED
$000
31 MARCH 2018
UNAUDITED
$000
Revenue
Premium revenueB1168,729 159,615
Less: Outwards reinsurance expense(26,480)(25,476)
Net premium revenue 142,249 134,139
Investment revenueC13,726 2,939
Fee and other revenue2,768 1,418
Net operating revenue148,743 138,496
Expenses
Claims expense90,123 98,640
Less: Reinsurance and other recoveries revenue(7,504)(9,745)
Net claims expenseB2, B382,619 88,895
Management and sales expenses 48,270 41,389
Acquisition proposal expenses - 302
Impairment of reinsurance receivables - 22,508
Financing expenses209 440
Total expenses131,098 153,534
Profit (loss) attributed to shareholders before tax17,645 (15,038)
Tax benefit (expense) attributed to shareholders’ profits(5,736)3,418
Profit (loss) for the half year11,909 (11,620)
Profit (loss) profit attributed to:
Shareholders11,594 (11,535)
Non-controlling interest315 (85)
11,909 (11,620)
Basic and diluted profit (loss) per share (cents)3.4 (4.1)

13
8LI EFSZI WXEXIQIRX WLSYPH FI VIEH MR GSRNYRGXMSR ȅMXL XLI EGGSQTER]MRK RSXIW
Tower Limited
FOR THE HALF YEAR ENDED
NOTE
31 MARCH 2019
UNAUDITED
$000
31 MARCH 2018
UNAUDITED
$000
Profit (loss) for the half year11,909 (11,620)
Other comprehensive profit (loss)
Currency translation differences(1,001)(1,491)
Other comprehensive loss net of tax(1,001)(1,491)
Total comprehensive profit (loss) for the half year10,908 (13,111)
Total comprehensive profit (loss) attributed to:
Shareholders 10,626 (12,996)
Non-controlling interest282 (115)
10,908 (13,111)
Consolidated Statement of Comprehensive Income
For the half year ended 31 March 2019

14
8SȅIV 1MQMXIH half year report 2019
The above statement should be read in conjunction with the accompanying notes.
Tower Limited
AS AT
NOTE
31 MARCH 2019
UNAUDITED
$000
30 SEPTEMBER
2018
AUDITED
$000
Assets
Cash and cash equivalents66,969 102,001
Receivables D1245,974 259,607
InvestmentsC2220,515 198,000
Derivative financial assets - 271
Deferred acquisition costs22,870 22,595
Property, plant and equipment 8,456 8,510
Intangible assetsD261,888 45,042
Current tax assets13,376 13,831
Deferred tax assets31,909 36,376
Total assets671,957 686,233
Liabilities
Payables71,367 80,375
Provisions4,166 5,789
Unearned premiums175,606 175,551
Outstanding claims & additional risk margin134,305 148,976
BorrowingsC3 - -
Current tax liabilities300 174
Deferred tax liabilities532 589
Total liabilities386,276 411,454
Net assets285,681 274,779
Equity
Contributed equityE1447,543 447,543
Accumulated losses(46,489)(58,077)
Reserves(117,123)(116,155)
Total equity attributed to shareholders283,931 273,311
Non-controlling interest1,750 1,468
Total equity285,681 274,779
The interim financial statements were approved for issue by the Board on 21 May 2019.
Michael P Stiassny Graham R Stuart
Chairman Director
Consolidated Balance Sheet
For the half year ended 31 March 2019

15
8LI EFSZI WXEXIQIRX WLSYPH FI VIEH MR GSRNYRGXMSR ȅMXL XLI EGGSQTER]MRK RSXIW
Tower Limited
ATTRIBUTED TO SHAREHOLDERS
UNAUDITED
NOTE
CONTRIBUTED
EQUITY
$000
ACCUMULATED
LOSS
$000
RESERVES
$000
TOTAL
$000
NON-
CONTROLLING
INTEREST
$000
TOTAL
EQUITY
$000
Half year ended
31 March 2019
At the beginning
of the half year 447,543 (58,077)(116,155) 273,311 1,468 274,779
Comprehensive income
Profit (loss) for the half
year – 11,594 - 11,594 315 11,909
Currency translation
differences – - (968)(968)(33)(1,001)
Total comprehensive income-11,594 (968)10,626 282 10,908
Transactions
with shareholders
Other - (6) - (6) - (6)
Total transactions
with shareholders - (6) - (6) - (6)
At the end of
the half year447,543 (46,489)(117,123)283,931 1,750 285,681
Half year ended
31 March 2018
At the beginning
of the half year 382,172 (51,299)(116,454) 214,419 1,325 215,744
Comprehensive income
Profit (loss) for
the half year - (11,535) - (11,535)(85)(11,620)
Currency translation
differences - - (1,461)(1,461)(30)(1,491)
Total comprehensive loss - (11,535)(1,461)(12,996)(115)(13,111)
Transactions
with shareholders
Net proceeds of capital
raiseE165,375 - - 65,375 - 65,375
Other - (3) - (3) - (3)
Total transactions
with shareholders65,375 (3) - 65,372 - 65,372
At the end of the half year447,547 (62,837)(117,915)266,795 1,210 268,005
Consolidated Statement of Changes in Equity
For the half year ended 31 March 2019

16
8SȅIV 1MQMXIH half year report 2019
The above statement should be read in conjunction with the accompanying notes.
Tower Limited
FOR THE HALF YEAR ENDED
NOTE
31 MARCH 2019
UNAUDITED
$000
31 MARCH 2018
UNAUDITED
$000
Cash flows from operating activities
Premiums received 169,819 152,721
Interest received 3,981 3,723
Net realised investment gains 97 321
Fee and other income received1,889 1,418
Reinsurance received14,828 27,402
Reinsurance paid(29,890)(28,369)
Claims paid(98,422)(111,281)
Payments to suppliers and employees (47,899)(44,129)
Income tax paid(744)(1,688)
Net cash inflow from operating activities C413,659 118
Cash flows from investing activities
Net (payments) proceeds from financial assets(27,695)4,510
Purchase of property, plant and equipment and intangible assets(20,299)(2,954)
Net cash (outflow) inflow from investing activities (47,994)1,556
Cash flows from financing activities
Share issue net of costsE1 - 65,775
Financing expenses(209)(609)
Repayment of borrowings - (30,000)
Net cash (outflow) inflow from financing activities (209)35,166
Net (decrease) increase in cash and cash equivalents(34,544)36,840
Foreign exchange movement in cash(488)(588)
Cash and cash equivalents at the beginning of the half year 102,001 83,876
Cash and cash equivalents at the end of the half year 66,969 120,128
Consolidated Statement of Cash Flows
For the half year ended 31 March 2019

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
17
PART A - INTRODUCTION
This section provides introductory information that is helpful to an overall understanding of the financial
statements and the areas of critical accounting judgements and estimates included in the financial
statements. It also includes a summary of Tower’s financial performance by operating segment.
A1. Summary of general accounting policies
Entities reporting
The interim financial statements presented are those of Tower Limited (the Company) and its subsidiaries. The
Company and its subsidiaries together are referred to in this financial report as Tower or the Group. The address
of the Company’s registered office is 45 Queen Street, Auckland, New Zealand.
Statutory base
Tower Limited is a company incorporated in New Zealand under the Companies Act 1993 and listed on the
NZX Main Board and the Australian Securities Exchange. The Company is a reporting entity under Part 7 of the
Financial Markets Conduct Act 2013.
Basis of preparation
The interim financial statements of the Group have been prepared in accordance with New Zealand Generally
Accepted Accounting Practice (NZ GAAP), and for the purposes of NZ GAAP, the Group is a for-profit
entity. They comply with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and
consequently include a lower level of disclosure than is required for annual financial statements.
The financial statements of the Group have been prepared in accordance with the requirements of Part 7 of the
Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules.
The interim financial statements should be read in conjunction with the annual financial statements for the year
ended 30 September 2018, which have been prepared in accordance with International Financial Reporting
Standards and New Zealand Equivalents to International Financial Reporting Standards.
The interim financial statements for the six months ended 31 March 2019 are unaudited.
Accounting policies
Refer to Note F4 for the impact of amendments to accounting standards. Other than this, the principal
accounting policies adopted in the preparation of the interim financial statements are consistent with those of
the audited annual financial statements for the year ended 30 September 2018.
Changes in comparatives
Refer to Note F3 for details of change in comparatives. Changes relate to income statement reclassification,
balance sheet reclassification and presentation of notes. There is no change to net assets or the 2018 profit.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
18
8SȅIV 1MQMXIH half year report 2019
A2. Critical Accounting Judgements And Estimates
The Group makes estimates and judgements in respect of certain key assets and liabilities. Estimates and
judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. Key areas where
critical accounting estimates and judgements have been applied are noted below.
Claims estimation
The valuation of net outstanding claims is an area of significant judgement and estimation. Key elements of
judgement included within claims estimations are: the rate of claims closure; the quantum of closed claims
reopening; the level of future increases in building and other claims costs; future claim management expenses;
and assessments of risk margin. With regards to the Canterbury earthquake claims, additional key elements
of judgement include: apportionment of claims costs between the four main earthquake events; and the
quantum of new claims being received from EQC and the average cost of these claims.
Key elements of judgement included within recoveries estimations are: the collectability of reinsurance
recoveries; recoveries from EQC in respect of land damage and building costs; and the assessments of risk
margin. The nature of estimation uncertainties, including from those factors listed above, mean that actual
claims experience may deviate from reported results.
Refer to Note B3 for further detail on the Canterbury Earthquakes.
EQC recoveries
Valuation of additional EQC recoveries in respect of building costs and land damage is an area of significant
judgement and estimation. Areas of judgement and subjectivity exist in assessments of: claim file review
of earthquake event allocation; the quality of assessment information; litigation risk factors; and portfolio
conservatism. Tower has filed a statement of claim against EQC in respect of land damage recoveries.
Refer to Note B3 for further detail on EQC recoveries for Canterbury earthquakes.
Deferred taxation
Deferred tax assets are recognised for all unused tax losses to the extent it is probable that taxable profits
will be available against which the losses can be utilised. Significant management judgement is required to
determine the amount of deferred tax assets that can be recognised based on the likely timing and quantum
of future taxable profits.
This assessment is completed on the basis of Tower’s approved strategic plans. If future profits do not occur as
expected, or there is a significant change in ownership, Tower may not be able to utilise all of these tax losses.
Capitalised IT development costs
Capitalisation of IT development costs is an area of judgement and estimation. The application of NZ IAS 38
Intangible Assets includes accounting considerations required for capitalisation of IT projects. When applying
NZ IAS 38, areas of judgement include consideration of recognition, impairment indicators, economic useful
life, and previous Board impairment decisions.
Refer to Note D2 for further detail on the intangible assets.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
19
A3. Segmental reporting
NEW ZEALAND
GENERAL
INSURANCE
$000
PACIFIC ISLANDS
GENERAL
INSURANCE
$000
OTHER
$000
TOTAL
$000
Half year ended 31 March 2019 (Unaudited)
Revenue
Revenue – external125,613 22,024 1,106 148,743
Net Operating Revenue125,613 22,024 1,106 148,743
Profit (loss) before tax12,270 6,302 (927)17,645
Tax benefit (expense)(4,185)(2,080)529 (5,736)
Profit (loss) for the half year8,085 4,222 (398)11,909
Half year ended 31 March 2018 (Unaudited)
Revenue
Revenue – external117,013 21,069 414 138,496
Net Operating Revenue117,013 21,069 414 138,496
Profit (loss) before tax(14,859)508 (687)(15,038)
Tax benefit (expense)4,235 (1,010)193 3,418
Loss for the half year(10,624)(502)(494)(11,620)
Total assets 31 March 2019 (Unaudited)472,600 90,537 108,820 671,957
Total assets 30 September 2018 (Audited)480,664 95,072 110,497 686,233
Total liabilities 31 March 2019 (Unaudited)328,746 55,980 1,550 386,276
Total liabilities 30 September 2018 (Audited)345,406 63,224 2,824 411,454
Description of segments and other segment information
Tower operates predominantly in two geographical segments, New Zealand and the Pacific region. The New
Zealand segment comprises general insurance business written in New Zealand. The Pacific Islands segment
includes general insurance business with customers in Pacific Islands written by Tower subsidiaries and branch
operations. Other includes head office expenses, financing costs and eliminations.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
20
8SȅIV 1MQMXIH half year report 2019
PART B - REVENUE AND CLAIMS
This section provides information about Tower’s insurance related financial performance. Tower operates
as a general insurance company and its insurance operations drive its performance and financial position.

Tower collects premiums from customers in exchange for providing insurance coverage over their assets
and activities. These premiums are recognised as revenue when they are earned by Tower, with a liability
for unearned premiums recognised on the balance sheet.

When customers suffer a loss that is covered by their policy, Tower will make payments to customers or
suppliers, which it recognises as claims expenses. To ensure that Tower’s obligations to customers are
properly recorded within the financial statements, Tower recognises provisions for outstanding claims.

To manage Tower’s risk and optimise its returns, Tower reinsures some of its exposure with reinsurance
companies. The premiums paid to reinsurers are recognised as an expense, while recoveries from
reinsurers are recognised as revenue.
B1. Premium revenue
FOR THE HALF YEAR ENDED
31 MARCH 2019
UNAUDITED
$000
31 MARCH 2018
UNAUDITED
$000
Gross written premiums169,665 160,980
Less: Gross unearned premiums(936)(1,365)
Premium revenue168,729 159,615
B2. Net claims expense
FOR THE HALF YEAR ENDED
NOTE
31 MARCH 2019
UNAUDITED
$000
31 MARCH 2018
UNAUDITED
$000
Canterbury earthquake claims (4 key events)B36,500 3,200
Other claims76,119 85,695
Total net claims expense82,619 88,895
B3. Canterbury earthquakes
As at 31 March 2019 Tower has 132 claims remaining to settle (30 September 2018: 163 claims) as a result of
earthquakes impacting the Canterbury region during 2010 and 2011.
The table opposite presents a financial representation of Tower’s outstanding claims provision at 31 March
2019 in relation to the four main earthquake events.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
21
B3. Canterbury earthquakes (continued)
Canterbury earthquakes insurance liability provision
31 MARCH 2019
UNAUDITED
$000
30 SEPTEMBER
2018
AUDITED
$000
Insurance liabilities
Gross outstanding claims(59,000)(67,900)
Additional risk margin(5,000)(5,000)
(64,000)(72,900)
Additional risk margin
As at 31 March 2019, the Board has maintained an additional risk margin of $5.0 million (30 September
2018: $5.0 million) over and above the provision of the Appointed Actuary, which is set at the 75th percentile
probability of sufficiency. The Board will continue to review this additional risk margin each half year and the
$5.0 million is expected to be released once the Canterbury outstanding claims liability has sufficiently run off.
The table below presents a financial representation of Tower’s outstanding reinsurance receivables at 31 March
2019 in relation to the four main earthquake events.
Canterbury earthquakes recievables
31 MARCH 2019
UNAUDITED
$000
30 SEPTEMBER
2018
AUDITED
$000
Reinsurance recovery receivables6,100 7,100
Reinsurance recoveries on risk margin900 800
Receivable from reinsurers7,000 7,900
EQC related to closed claims76,200 74,000
EQC related to open claims2,600 4,500
Risk margin on EQC receivable(8,800)(10,100)
Receivable from EQC70,000 68,400
EQC payable to reinsurers on closed claims(18,400)(17,900)
EQC payable to reinsurers on open claims(700)(1,000)
Risk margin on EQC payable to reinsurers receivable2,200 2,500
EQC payable to reinsurers(16,900)(16,400)
Receivable from EQC net of reinsurance53,100 52,000
Receivable from EQC and reinsurers60,100 59,900
EQC recovery receivable
Tower has one significant receivable amount related to Canterbury earthquake claims, being $70.0 million from
EQC (30 September 2018: $68.4 million). $16.9 million of this EQC amount is payable to reinsurers which has been
allowed for in payables (30 September 2018: $16.4 million). The amount payable to reinsurers may vary depending
on the balance collected from EQC. A risk margin of $8.8 million has been allowed for on the receivable from EQC
(30 September 2018: $10.1 million).

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
22
8SȅIV 1MQMXIH half year report 2019
B3. Canterbury earthquakes (continued)
Tower estimates the gross amount receivable due from EQC is significantly higher than the $70.0 million, but has
adopted this amount, which is the actuarial valuation of the Appointed Actuary. The method by which the actuarial
valuation is completed recognises the inherent risk and uncertainty with recovery of the full gross
amount.
Tower acknowledges that the EQC recoveries relating to Canterbury earthquakes are an area of significant
accounting estimation and judgement, including earthquake event allocation, litigation risk factors and other
actuarial assumptions.
The table below presents the cumulative impact of the four main Canterbury earthquake events on the income
statement.
NOTE
31 MARCH
2019
UNAUDITED
$000
30 SEPTEMBER
2018
AUDITED
$000
31 MARCH
2018
UNAUDITED
$000
Cumulative expenses associated with Canterbury
earthquakes:
Earthquake claims estimate(913,690)(905,840)(897,640)
Reinsurance recoveries724,523 723,173 721,873
Claim expense net of reinsurance recoveries(189,167)(182,667)(175,767)
Reinsurance expense(25,045)(25,045)(25,045)
Additional risk margin(5,000)(5,000)(10,000)
Cumulative impact of Canterbury earthquakes before tax(219,212)(212,712)(210,812)
Income tax benefit61,379 60,228 59,696
Cumulative impact of Canterbury earthquakes after tax(157,833)(152,484)(151,116)
Recognised in current period (net of tax)
Net claims expenseB2(4,680)(7,272)(2,304)
Additional risk marginB23,600 -
Impairment of receivables - (15,660)(15,660)
(4,680)(19,332)(17,964)
The Board is actively engaged in monitoring Canterbury earthquake developments. Board process relies on
the Appointed Actuary’s determination of earthquake ultimate incurred claims estimates and the derivation
of estimated outcomes. Recognising relative complexities which exist within remaining open claims, the
Appointed Actuary has reviewed each remaining property file with Tower claims staff. This individual claim
methodology included review of the latest specialist assessment reports and scope of works to repair or
rebuild properties to determine the propensity for future costs to vary. In addition, further provision was made
for claims re-opening; claims moving over the EQC cap of $100,000; claims in litigation and other claim
categories.
Given the nature of estimation uncertainties (including those listed above) actual claims experience may still
deviate, perhaps substantially, from the gross outstanding claims liabilities recorded as at 31 March 2019. Any
further changes to estimates will be recorded in the accounting period when they become known.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
23
B3. Canterbury earthquakes (continued)
The catastrophe reinsurance cover headroom remaining is included in the table opposite.
CATASTROPHE REINSURANCE
COVER REMAINING
31 MARCH
2019
UNAUDITED
$000
30 SEPTEMBER
2018
AUDITED
$000
Date of event
June 2011254,700255,700
December 2011486,700486,900
Tower has exceeded its catastrophe reinsurance limit in relation to the September 2010 and February 2011 events.
PART C - FINANCIAL INSTRUMENTS AND LIQUIDITY
Funds provided by shareholders and collected as premiums are invested by Tower, providing a financial return
and also ensuring that Tower’s obligations to pay claims and expenses can be met.


This section provides information about Tower’s financial instruments, including information about the cash and
investments that Tower holds, its approach to managing risk for these financial instruments, and its cash flows.
C1. Investment revenue
NOTE
31 MARCH 2019
UNAUDITED
$000
31 MARCH 2018
UNAUDITED
$000
Fixed interest securities
Interest income3,981 3,723
Net realised loss(207)(160)
Net unrealised loss(21)(187)
Total fixed interest securities3,753 3,376
Equity securities
Net unrealised (loss) gainC5 - (745)
Total equity securities - (745)
Other
Net realised gain304 481
Net unrealised loss(331)(173)
Total other(27)308
Total interest and dividend income3,981 3,723
Total net realised gain97 321
Total net unrealised loss(352)(1,105)
Total investment revenue3,726 2,939

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
24
8SȅIV 1MQMXIH half year report 2019
C2. Investment assets
31 MARCH
2019
UNAUDITED
$000
30 SEPTEMBER
2018
AUDITED
$000
Fixed interest securities219,906 197,367
Equity securities575 599
Property securities34 34
Total investments220,515 198,000
C3. Borrowings
CURRENCY
INTEREST
RAT E
ROLLOVER
DATE (DRAWN)
/ MATURITY
DAT E
(UNDRAWN)
FAC E
VALUE
$000
UNAMORTISED
COSTS
$000
CARRYING
VALUE
$000
FAIR
VALUE
$000
As at 31 March 2019 (Unaudited)
Bank facility (undrawn)NZDVariable27-Mar-2330,000 – – –
Total borrowings – – –
As at 30 September 2018 (Audited)
Bank facility (undrawn)NZDVariable9-Sep-1950,000 – – –
Total borrowings – – –
Cash advance facilities
During March 2019, the Company entered into a new $30.0 million cash advance facility with Bank of New
Zealand, which replaced an existing $50.0 million cash advance facility that was due to expire in September
2019. This new general facility is primarily for the development and acquisition of Tower’s information
technology platforms, software and related assets. The facility limit will decrease from the initial $30.0 million:
to $25.0 million on 1 July 2020; to $20.0 million on 1 July 2021; and to $15.0 million on 1 July 2022.
All borrowings are subject to normal terms and conditions for facilities of this nature, including financial
covenants and are unsecured. The Company has fully complied with all covenants during the half year ended
31 March 2019.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
25
C4. Reconciliation of profit (loss) for the half year to net cash flows from operating activities
FOR THE HALF YEAR ENDED
31 MARCH 2019
UNAUDITED
$000
31 MARCH 2018
UNAUDITED
$000
Profit (loss) for the half year11,909 (11,620)
Adjusted for non-cash items
Depreciation of property, plant and equipment694 761
Amortisation of software2,813 2,579
Impairment of reinsurance receivables - 21,750
Unrealised loss on financial assets352 1,104
Gain on disposal of property, plant and equipment-(19)
Change in deferred tax4,410 (4,187)
8,269 21,988
Adjusted for movements in working capital
(excluding the effects of exchange differences on consolidation)
Change in receivables12,852 6,527
Change in payables(20,161)(16,467)
Change in taxation581 (919)
(6,728)(10,859)
Adjusted for other items classified as investing / financing activities
Financing expenses209 609
209 609
Net cash inflows from operating activities13,659 118

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
26
8SȅIV 1MQMXIH half year report 2019
C5. Fair value of financial assets and liabilities
Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly
transaction between market participants at the measurement date. Refer below for details of valuation
methods and assumptions used by Tower for each category of financial assets and liabilities.
(i) Cash and cash equivalents
The carrying amount of cash and cash equivalents reasonably approximates its fair value.
(ii) Financial assets at fair value through profit or loss and held for trading
The fair value of financial instruments traded in active markets is based on quoted market prices at the
balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from
an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for
financial assets held by the Group is the current bid price. These instruments are included in Level 1.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of
observable market data where it is available and rely as little as possible on entity specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. The
following fair value measurements are used:
•The fair value of fixed interest securities is based on the maturity profile and price/yield.
•The fair value of forward foreign exchange contracts is determined using forward exchange rates at the
balance sheet date, with the resulting value discounted back to present value.
•Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining
financial instruments.
If one or more of the significant inputs is not based on observable market data, the instrument is included in
Level 3.
(iii) Loans and receivables and other financial liabilities held at amortised cost
Carrying values of loans and receivables, adjusted for impairment values, and carrying values of other financial
liabilities held at amortised cost reasonably approximate their fair values.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
27
C5. Fair value of financial assets and liabilities (continued)
The following tables present the Group’s assets and liabilities categorised by fair value measurement hierarchy
levels. There have been no transfers between levels of the fair value hierarchy during the current financial
period (30 September 2018: nil)
TOTAL
$000
LEVEL 1
$000
LEVEL 2
$000
LEVEL 3
$000
As at 31 March 2019 (Unaudited)
Assets
Investment in equity securities575 - - 575
Investments in fixed Interest securities219,906 - 219,906 -
Investments in property securities34 - 34 -
Investments220,515 - 219,940 575
Derivative financial assets - - - -
Total financial assets220,515 - 219,940 575
As at 30 September 2018 (Audited)
Assets
Investment in equity securities599 - - 599
Investments in fixed Interest securities197,367 - 197,367 -
Investments in property securities34 - 34 -
Investments198,000 - 197,401 599
Derivative financial assets271 - 271 -
Total financial assets198,271 - 197,672 599
At 31 March 2019, the Level 3 category includes investment in equity securities of $575,000 (30 September
2018: $599,000). This investment is in unlisted shares of a company which provides reinsurance to Tower.
The fair value is calculated based on the net assets of the company from the most recently available financial
information, adjusted for market conditions. The following table represents the changes in Level 3 instruments:
INVESTMENT IN EQUITY SECURITIES
AS AT
31 MARCH
2019
UNAUDITED
$000
AS AT
30 SEPTEMBER
2018
AUDITED
$000
Opening balance599 1,412
Total gains and losses recognised in profit and loss - (745)
Foreign currency movement(24)(46)
Disposals - (22)
Closing balance575 599

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
28
8SȅIV 1MQMXIH half year report 2019
C5. Fair value of financial assets and liabilities (continued)
The following table shows the impact of increasing or decreasing the combined inputs used to determine the
fair value of the level 3 investments by 10%:
CARRYING
AMOUNT
$000
FAVOURABLE
CHANGES OF 10%
$000
UNFAVOURABLE
CHANGES OF 10%
$000
As at 31 March 2019
Investment in equity securities (Unaudited)575 58 (58)
As at 30 September 2018
Investment in equity securities (Audited)599 60 (60)
PART D - OTHER BALANCE SHEET ITEMS
This section provides information about assets and liabilities not included elsewhere.
D1. Receivables
AS AT
31 MARCH
2019
UNAUDITED
$000
AS AT
30 SEPTEMBER
2018
AUDITED
$000
Premium receivables140,029 141,578
Reinsurance recovery receivables18,905 32,600
Claim recoveries and unearned reinsurance premiums11,345 11,616
Trade receivables170,279 185,794
EQC receivables70,541 69,272
Other5,154 4,541
Total receivables245,974 259,607
D2. Intangible assets
Impairment testing for software under development
Software under development includes expenditure relating to the development of a new core IT platform,
digital enhancements, communications technology and work to extend the useful life of other IT assets.
Software under development is subject to impairment testing and no impairment loss has been recognised
in 2019 (30 September 2018: Nil). In assessing the recoverable amount for software under development,
Management has based its assumptions on the five year projections covered by Tower’s 2019-2023 operating
plans, including an assessment of additional revenue and expense savings expected to be generated by each
asset. These assumptions are determined from a variety of sources, including Management’s past experience,
comparison of key metrics to industry baselines, sensitivity of revenues to changes in drivers and analysis of
current expenditure that can be reduced. Management has not put any value on projected cash flows beyond
a five year period. A discount rate of 12% has been used in the valuation (30 September 2018: 12%).

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
29
D2. Intangible assets (continued)
SOFTWARE
HALF YEAR ENDED 31 MARCH 2019 (UNAUDITED)GOODWILLACQUIRED
INTERNALLY
DEVELOPED
UNDER
DEVELOPMENTTOTAL
Cost
Opening balance17,744 5,382 37,645 22,502 83,273
Additions - - - 19,659 19,659
Transfers - 179 6,229 (6,408) -
Closing balance17,744 5,561 43,874 35,753 102,932
Accumulated amortisation:
Opening balance - (4,698)(33,533) - (38,231)
Amortisation charge - (117)(2,696) - (2,813)
Closing balance - (4,815)(36,229) - (41,044)
Net book value
Cost17,744 5,561 43,874 35,753 102,932
Accumulated amortisation - (4,815)(36,229) - (41,044)
Closing net book value17,744 746 7,645 35,753 61,888
SOFTWARE
YEAR ENDED 30 SEPTEMBER 2018 (AUDITED)GOODWILLACQUIRED
INTERNALLY
DEVELOPED
UNDER
DEVELOPMENTTOTAL
Cost
Opening balance17,744 5,097 37,045 4,484 64,370
Additions - - - 19,026 19,026
Disposals - - - (74)(74)
Transfers - 285 600 (885) -
Transfers to property, plant and equipment - - - (49)(49)
Closing balance17,744 5,382 37,645 22,502 83,273
Accumulated amortisation:
Opening balance - (4,501)(28,535) - (33,036)
Amortisation charge - (197)(4,998) - (5,195)
Closing balance - (4,698)(33,533) - (38,231)
Net book value
Cost17,744 5,382 37,645 22,502 83,273
Accumulated amortisation - (4,698)(33,533) - (38,231)
Closing net book value17,744 684 4,112 22,502 45,042

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
30
8SȅIV 1MQMXIH half year report 2019
PART E - CAPITAL
This section provides information about Tower’s capital structure.
E1. Contributed equity
31 MARCH
2019
UNAUDITED
$000
30 SEPTEMBER
2018
AUDITED
$000
Opening balance447,543 382,172
Issue of share capital - 70,838
Costs of capital raise - (5,467)
Total contributed equity447,543 447,543
On 14 November 2017 the Company invited its eligible shareholders to subscribe to a rights issue of 1 new
share for every 1 existing share held at the record date on 22 November 2017 at a price of NZD0.42 (or
AUD0.39) for each new share. The issue was fully subscribed on 20 December 2017.
Represented by:
31 MARCH
2019
UNAUDITED
NUMBER
OF SHARES
30 SEPTEMBER
2018
AUDITED
NUMBER
OF SHARES
Opening balance337,324,300 168,662,150
Issued shares - 168,662,150
Total shares on issue337,324,300 337,324,300
Ordinary shares issued by the Group are classified as equity and are recognised at fair value less direct issue
costs. All shares rank equally with one vote attached to each share. There is no par value for each share.
E2. Solvency requirements
The methodology and bases for determining the solvency margin are in accordance with the requirements
of the Solvency Standard for Non-life Insurance Business published by the Reserve Bank of New Zealand.
The minimum solvency capital required to be retained by Tower Insurance Limited Group to meet solvency
requirements under the Insurance (Prudential Supervision) Act 2010 is shown below. Actual solvency capital
exceeds the minimum solvency capital requirement for the Tower Insurance Limited Group and Tower
Insurance Limited, refer below.
TOWER INSURANCE LIMITEDTOWER INSURANCE LIMITED GROUP
31 MARCH
2019
UNAUDITED
$000
30 SEPTEMBER
2018
UNAUDITED
$000
31 MARCH
2019
UNAUDITED
$000
30 SEPTEMBER
2018
AUDITED
$000
Actual solvency capital150,800 136,476 173,067 156,765
Minimum solvency capital55,569 58,298 70,841 74,344
Solvency margin95,231 78,178 102,226 82,421
Solvency ratio271%234%244%211%

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
31
E2. Solvency requirements (continued)
The Reserve Bank of New Zealand imposed a condition of license requirement for Tower Insurance Limited
to maintain a minimum solvency margin of $50.0 million. At 31 March 2019 the reported solvency margin was
higher than this minimum amount for both Tower Insurance Limited and Tower Insurance Limited Group.
E3. Net assets per share
31 MARCH
2019
UNAUDITED
$
30 SEPTEMBER
2018
AUDITED
$
Net assets per share0.85 0.81
Net tangible assets per share0.57 0.57
PART F - OTHER DISCLOSURES
This section includes additional disclosures which are required by financial reporting standards.
F1. Contingent liabilities
The Group is occasionally subject to claims and disputes as a commercial outcome of conducting insurance
business. Provisions are recorded for these claims or disputes when it is probable that an outflow of resources
will be required to settle any obligations. Best estimates are included within claims reserves for any litigation
that has arisen in the usual course of business.
The Group has no other contingent liabilities.
F2. Subsequent events
There were no other subsequent events after balance date.
F3. Change in comparatives
Comparative information has been reclassified to achieve consistency with the current year presentation.
Changes relate to income statement reclassification. There is no change to net assets or the 2018 profit.
Income Statement - corrections of claims expense and reinsurance recoveries revenue
Claims expense and reinsurance and other recoveries revenue in the Income Statement have each been
adjusted by $30.6m, reducing claims expense to $98.6m and reinsurance and other recoveries revenue to
$9.7m. This change corrects adjustments that were made in the comparative period to record the claims
provisions relating to the Canterbury earthquakes and more accurately reflects the apportionment of the
movement in claims provisions between claims expense and reinsurance recoveries. There is no change to
net claims expense. The changes in the Canterbury earthquakes provisions were correctly reflected in financial
statements for the year ended 30 September 2018. Changes for consistency have also been made to the
Statement of Cash Flows.
Statement of Cash Flows - reclassification between cash and cash equivalents and investments
In the Statement of Cash Flows comparative period, the cash and cash equivalents balance at the beginning of
the half year has been reduced by $19.0m and cash and cash equivalents balance at the end of the half year
has been reduced by $22.5m to reflect a reclassification of term deposits with maturity dates greater than 3
months but less than 12 months from cash and cash equivalents to investments. The difference between these
amounts has resulted in a decrease to the net proceeds for financial assets of $3.5m.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
32
8SȅIV 1MQMXIH half year report 2019
F3. Change in comparatives (continued)
Statement of Cash Flows - reclassification between premiums received and reinsurance paid
Premiums received and reinsurance paid in the Cash Flow Statement have each been adjusted by $0.2m,
reducing premiums received to $152.7m and reinsurance paid to $28.4m. This change is a result of
reclassifications between insurance liabilities and other receivables.
F4. Impact of amendments to accounting standards
The following new Accounting Standards, the adoption of which had no material financial impact on the Group,
are applicable for the current reporting period.
ACCOUNTING STANDARDDESCRIPTION
NZ IFRS 9
Financial Instruments
NZ IFRS 15Revenue from contracts with customers
NZ IFRS 9 Financial Instruments
For Tower, NZ IFRS 9 Financial Instruments became effective for the period beginning on 1 October 2018,
replacing the existing accounting requirements for financial instruments under IAS 39 Financial Instruments:
Recognition and Measurement. NZ IFRS 9 introduces changes to the classification and measurement of financial
instruments, replaces the ‘incurred loss’ impairment model with a new ‘expected loss’ model when recognising
expected credit losses on financial assets, and imposes new general hedge accounting requirements. NZ IFRS
9 specifically excludes from its scope the rights and obligations arising from insurance contracts, as defined
under NZ IFRS 4 Insurance Contracts.
Tower has applied NZ IFRS 9 retrospectively, with no material change to the carrying amount of its financial
instruments when measured under the requirements of NZ IFRS 9.
Tower’s financial instruments that are classified at fair value through profit or loss on initial recognition, and
which are subsequently re-measured to fair value at each reporting date, are classified on this basis because
they back general insurance liabilities and measuring them at fair value significantly reduces a potential
measurement inconsistency which would arise if the assets were measured at amortised cost or fair value
through other comprehensive income.
For debt instruments carried at amortised cost, Tower assesses the expected credit losses on a forward
looking basis, and have amended the impairment methodology for subsequent measurement depending
on whether there has been a significant increase in credit risk. Financial assets that are held for collection
of contractual cashflows where those cashflows represent solely payments of principal and interest are
measured at amortised cost.
The measurement bases of Tower’s financial assets and liabilities under NZ IAS 39 and NZ IFRS 9, showing
changes in classification of Tower’s financial instruments, are as opposite.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
33
F4. Impact of amendments to accounting standards (continued)
ASSET/LIABILITY
MEASUREMENT BASIS
UNDER NZ IAS 39
MEASUREMENT BASIS
UNDER NZ IFRS 9
CARRYING AMOUNT
UNDER NZ IAS 39 AND NZ
IFRS9* $000
Cash and cash equivalents held by
corporate entities
Amortised costAmortised cost7,296
Cash and cash equivalents held by
insurance companies
Amortised cost
Fair value through
profit or loss
59,673
Investments
Fair value through
profit or loss
Fair value through
profit or loss
220,515
Claim recoveriesAmortised costAmortised cost3,141
Derivative financial assets
Fair value through
profit or loss
Fair value through
profit or loss
-
Trade and other payablesAmortised costAmortised cost71,367
BorrowingsAmortised costAmortised cost -
* The reclassifications of the financial instruments on adoption of NZ IFRS 9 did not result in any material changes to
carrying amounts.
NZ IFRS 15 Revenue from Contracts with Customers
NZ IFRS 15 Revenue from Contracts with Customers became effective for the period beginning on 1 October 2018, with
no material impact to Tower. NZ IFRS 15 introduces a single model for the recognition of revenue based on when an
entity satisfies the contractual performance obligations by transferring a promised good and service to a customer. It
does not apply to insurance contracts and financial instruments. Hence the majority of Tower’s revenue is not impacted
by this change. Revenue from contracts with customers, as defined by NZ IFRS 15, is disclosed as ‘Fee and other
income’ in the consolidated income statement. There has been no material change in the measurement of ‘Fee and
other income’ on implementation of NZ IFRS 15 as the existing recognition and measurement of revenue under the
applicable contracts meets the requirements under the new standard.

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
34
8SȅIV 1MQMXIH half year report 2019
Tower LimitedTower Limited
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz

Notes to the Interim Financial Statements
For the half year ended 31 March 2019
Tower Limited
35
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Tower Limited

36
8SȅIV 1MQMXIH half year report 2019
Board of Directors
Michael Stiassny (Chairman)
Warren Lee
Steve Smith
Graham Stuart
Wendy Thorpe
Marcus Nagel
Chief Executive Officer
Richard Harding
Company Secretary
Hannah Snelling
Executive leadership team
Richard Harding
Tony Antonucci
Michelle James
Jane Hardy
Peter Muggleston
Jeff Wright
Michelle McBride
Registered Office
New Zealand
Level 14
Tower Centre
45 Queen Street
PO Box 90347
Auckland
Telephone: +64 9 369 2000
Facsimile: +64 9 369 2245
Australia
C/- PricewaterhouseCoopers
Nominees (N.S.W) Pty Ltd
PricewaterhouseCoopers
One International Towers Sydney
Watermans Quay
Barangaroo
Sydney NSW 2000
Australia
Tower Directory
Auditor
PricewaterhouseCoopers
Banker
Westpac New Zealand Limited
Enquiries
For customer enquiries, call Tower on
0800 808 808 or visit tower.co.nz
For investor enquiries:
Telephone: +64 9 369 2000
Email: investor.relations@tower.co.nz
Website: tower.co.nz
Company numbers
Tower Limited (Incorporated
in New Zealand)
NZ Incorporation 979635
NZBN 9429 0374 84576
ARBN 088 481 234
Stock exchanges
The Company’s ordinary shares are
listed on the NZSX and the ASX. On
Wednesday 18 May 2016, Tower’s
ASX admission category changed to
“ASX Foreign Exempt Listing”.
Registrar
New Zealand
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road,
Takapuna, Auckland
Private Bag 92119
Auckland 1142
Freephone within New Zealand: 0800 222 065
Telephone New Zealand: +64 9 488 8777
Facsimile New Zealand: +64 9 488 8787
Australia
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street
Abbotsford VIC 3067
GPO Box 3329
Melbourne Vic 3000
Freephone within Australia: 1800 501 366
Telephone Australia: +61 3 9415 4083
Facsimile Australia: +61 3 9473 2500
Email: enquiry@computershare.co.nz
Website: investorcentre.com/nz
You can also manage your holdings
electronically by using Computershare’s
secure website investorcentre.com/nz
This website enables holders to view
balances, change addresses, view payment
and tax information and update payment
instructions and report options.
Tower recommends shareholders elect to
have any payments direct credited to their
nominated bank account in New Zealand or
Australia to minimise the risk of fraud and
misplacement of cheques.
Please quote your CSN number or
shareholder number when contacting
Computershare.

Tower Limited Investor Relations
Telephone: +64 9 369 2000
Email: investor.relations@tower.co.nz
Website: tower.co.nz
Registrar
Computershare Investor Services Limited
Freephone within New Zealand: 0800 222 065
Telephone New Zealand: +64 9 488 8777
Freephone within Australia: 1800 501 366
Telephone Australia: +61 3 9415 4083
Email: enquiry@computershare.co.nz
Website: investorcentre.com/nz