Update on Multi Policy Discount Remediation

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand


14 November 2023
Update on Multi Policy Discount Customer Remediation
Tower Limited today provides an update on progress with its multi-policy discount customer
remediation.

Tower has made substantial progress in refunding customers who did not receive their correct
multi-policy discounts with $6.2m excluding GST paid to affected customers as of 31 October 2023.

Tower now expects that its costs associated with this remediation will be approximately $11.2m
excluding GST, an increase from $6.2m at the half year. This allows for amounts to be repaid to
around 65,000 customers and includes an estimate of a regulatory penalty from potential
enforcement action, following Tower's self-reporting of the matter to the Financial Markets
Authority (FMA) and the FMA's subsequent investigation. Tower will keep the market updated on
developments in this respect.

Tower’s FY23 underlying profit guidance remains unchanged.

Tower CEO Blair Turnbull says, “Tower is focused on putting things right for customers who have
received incorrect discounts extending back to 2016. We sincerely apologise to those who have
been affected.

“We are redesigning and simplifying our multi-policy offering and expect to share more about this
change in the coming year,” he says.

ENDS

This announcement has been authorised by Tower Chief Executive, Blair Turnbull.

For media enquiries, please contact in the first instance:
Emily Davies
Head of Corporate Affairs and Sustainability
021 815 149
emily.davies@tower.co.nz