Tower Resilient to Recent Weather Events, Updates Guidance

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Auckland 1142, New Zealand
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17 February, 2023

Tower Remains Resilient to Recent Weather Events, updates guidance

Tower Limited (NZX/ASX: TWR) has today provided an update on the financial impact of the Auckland and
Upper North Island Weather Event as well as claims related to Cyclone Gabrielle.

Tower CEO, Blair Turnbull says, “Our hearts go out to the many Kiwis who have been devastated by these two
natural disasters in quick succession. Tower has been working tirelessly to support customers through this
extremely difficult time.

“Tower remains financially strong and is well placed to continue supporting customers and communities
through the recovery. The personal and economic impacts of these events is a reminder of the critical role
insurance plays in bolstering our collective resilience.,” he says.

Auckland & Upper North Island Weather Event
Claims for the Auckland and Upper North Island weather event from 27 January have slowed substantially
since Tower’s market announcement on 9 February. The insurer has received approximately 4,850 claims to
date in relation to this event.

At this stage, Tower estimates the ultimate cost of the Auckland and Upper North Island weather event to be
within the range of $95m to $125m. Costs for this event will predominantly be covered by Tower’s reinsurance
for catastrophe events which has an excess of $11.875m.

Cyclone Gabrielle Event
Tower has received approximately 945 claims for damage caused by Cyclone Gabrielle and is in the early
stages of estimating its financial impact.

Tower expects further claims as people in affected areas regain access to their properties and power and
communications are restored. While there is insufficient information to estimate the ultimate cost of Cyclone
Gabrielle, Tower expects it is likely to also trigger Tower’s reinsurance for catastrophe events, with an excess
of $11.875m.

Guidance update

Tower has updated its full year underlying NPAT guidance to between $18m and $23m, from a range of
between $27m and $32m. This guidance reflects positive actions taken by Tower to prepare itself for future
events, including an increase in Tower’s large events allowance to $40m (up from $30m) and the expected
cost of reinstating reinsurance arrangements.

Consequently, Tower has revised its forecast for dividends to 5 cents per share for the full year, from 6.5 cents
per share.

Tower’s solvency position remains strong, despite the occurrence of potentially two catastrophic events so
early in the financial year. A decision will be made on whether to pay an interim dividend when Tower’s half

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
year results are approved, in accordance with Tower’s ordinary dividend policy, acting prudently and in light
of information available at that time.


ENDS

This announcement has been authorised by Tower CEO, Blair Turnbull.

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