Tower further strengthens solvency position

Tower Limited
Level 14, 45 Queen Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
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


18 March 2021


Tower further strengthens solvency position  

Tower Insurance welcomes Reserve Bank of New Zealand (RBNZ)’s decision to confirm a reduction in
the minimum solvency margin required to be held by Tower under its licence condition from $50m to
$25m. The reduction recognises Tower’s decreasing risk related to the Canterbury earthquakes.  

Tower CEO, Blair Turnbull says the Kiwi Insurer has a very strong balance sheet.

Tower’s solvency margin as at 30 September 2020 was $140m after adjusting to include the EQC
Receivable settlement of $42m. This was $90m above the minimum solvency margin of $50m,
increasing to $115m above following the reduction of the minimum solvency margin to $25m.

The remaining $25m licence condition will be maintained due to residual uncertainty related to the
Canterbury earthquakes, which Tower is confident is both reducing and is being managed effectively.
The licence condition will be reviewed by RBNZ in 12 months.

Mr Turnbull says this change is another positive step forward for Tower which has continued to
strengthen its capital and solvency structure while investing in new digital technologies.

More than 270,000 Tower customer policies are now on Tower’s leading, cloud-based digital and data
platform. As a result of simplified online processes, two-thirds of new business is now coming through
online channels and close to half of all claims are being logged online.

In February Tower announced its intention to pay an interim dividend as at 31 March 2021, to be
confirmed at its half year results announcement in May 2021.

ENDS

This announcement has been authorised by the Tower Board

TOWER
Blair Turnbull
Chief Executive Officer
Tower Limited
ARBN 645 941 028 Incorporated in New Zealand




For media enquiries, please contact in the first instance:
Emily Davies
Head of Corporate Affairs and Reputation
Tower Limited
Mobile: +64 21 815 149
Email: emily.davies@tower.co.nz