Strong Half Year Results with Ongoing Operating Improvement

28 May 2024
Tower Limited
Half Year 2024 Results for Announcement to Market
In accordance with NZX Listing Rule 3.5.1 we enclose the following for release to the market in relation to Tower
Limited’s (NZX/ASX: TWR) Half Year 2024 Year Results:

1 Media Release
2 Results Announcement
3 Interim Financial Statements (including Independent Auditor’s Review Report)
4 Results Announcement Presentation
5 Results Announcement Call Script
6 NZX Distribution Notice

Tower’s Chairman, Michael Stiassny, Chief Executive Officer, Blair Turnbull, and Chief Financial Officer, Paul
Johnston, will discuss the half year results at 10:00am New Zealand time today.
Tower’s Board confirms for the purposes of ASX Listing Rule 1.15.3 that Tower continues to comply with the NZX
Main Board Listing Rules.

ENDS

This announcement has been authorised by:

Blair Turnbull
Chief Executive Officer
Tower Limited

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

For investor queries, please contact in the first instance:
James Silcock
Head of Strategy, Planning and Investor Relations
+64 22 395 9327
james.silcock@tower.co.nz

Market Information
NZX Limited
Level 1, NZX Centre
11 Cable Street
Wellington
New Zealand
Company Announcements Office
ASX Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
Australia

---

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

28 May, 2024

Strong Half Year Result With Ongoing Operating Improvements

Kiwi insurer, Tower Limited (NZX/ASX: TWR) today reported its results for the half year to 31 March 2024,
recording an underlying net profit after tax (underlying NPAT) of $36.6m and a reported profit of $36m.

The strong results were attributed to improvements in business-as-usual (BAU) claims performance, premium
growth and operational and digital efficiencies, and compared favourably with the $5.1m reported loss in the
HY23 result which was impacted by catastrophe events.

Summary of HY24:
• Gross written premium (GWP) $291m, up 20% on HY23
• Business as usual (BAU) claims ratio 49.7% vs 51.1% in HY23
• Management expense ratio (MER) improved to 31.3% vs 35.0% in HY23
• Large event costs -$1.9m vs $37.3m in HY23, due to a favourable revision to the most recent estimate for
Vanuatu cyclone claims incurred in the prior year
• Customer numbers declined 1% to 309,000 vs 312,000 in HY23 partly due to tightened risk appetite for
high-theft motor vehicle models
• Combined operating ratio (COR) including large events 80.2% vs 104.5% in HY23
• Underlying profit $36.6m vs $3.7m loss in HY23
• Reported profit $36m vs $5.1m loss in HY23
• Interim dividend 3 cents per share.

The BAU claims ratio has reduced to 49.7% compared to 51.1% in HY23 and 55.1% at FY23. This was due to
enhanced processes, a reduction in motor theft claims following targeted underwriting actions and calmer
weather which reduced the frequency of house claims in the half.

As at 27 May 2024, Tower had closed 97% of Auckland Anniversary and Cyclone Gabrielle FY23 catastrophe event
claims.

Strong business performance
Premium growth continued in HY24 with GWP increasing 20% year on year to $291m. This was predominantly
driven by prior period rating increases designed to mitigate the impacts of inflation, crime and increased
reinsurance costs following the 2023 catastrophe events.

Tower’s GWP growth, combined with disciplined cost control has seen MER improve again, reducing to 31% from
35% in HY23. Tower is continuing to drive business efficiencies from investments in digitisation and streamlining
the business. Tower’s Suva hub is now answering half of all New Zealand customer sales and service calls.

Tower recently won the Canstar 2024 Home & Contents Insurer of the Year Award, recognising the insurer for
providing outstanding value through its products and services.

No large events recorded in HY24
Tower has set a conservative large events allowance of $45m for FY24 which currently remains unused. Any
unused portion of the large events allowance at year end will increase underlying NPAT, and consequently
improve the full year result. For example, if there were no large events in FY24 underlying NPAT would be
increased by an additional $32m ($45m less tax).

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
As a result of there being no large events in the half, Tower’s combined operating ratio (COR) is now 80.2%, well
below the COR of 104.5% in HY23.

Tower is well positioned looking forward
“Tower has delivered a strong result this half, driven by improved claims, digitisation and operational
performance and positive customer experiences. The business is well positioned to deliver sustained premium
growth through innovating our products and services and improved efficiencies, and ultimately attractive long-
term shareholder returns,” Mr Turnbull says.

Tower’s FY24 full year guidance is for underlying NPAT to be greater than $35m which assumes full utilisation of
the large events allowance. GWP growth in FY24 is expected to be between 10% and 15% and MER is expected to
be between 30% and 32%. For the full year FY24, Tower now assumes COR will be less than 93%, improved from
a range of between 95% and 97%.

ENDS

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

For media enquiries, please contact:
Emily Davies
Head of Corporate Affairs and Sustainability
+64 21 815 149
emily.davies@tower.co.nz

For investor enquiries, please contact:
James Silcock
Head of Strategy, Planning and Investor Relations
+61 22 395 9327
James.silcock@tower.co.nz

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at June 2023

Please do not amend or delete individual rows. As this template relates to prescribed content, changes to content
should only be made where it is clearly indicated that this is permitted, otherwise, if an Issuer considers a particular
element does not apply, mark the row as N/A, Any other changes to this prescribed form must first be approved by
NZX as required under NZX Listing Rule 3.26.1.

Results for announcement to the market
Name of issuer Tower Limited
Reporting Period 6 months to March 2024
Previous Reporting Period 12 months to September 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$269,434 19%
Total Revenue $273,541 18%
Net profit/(loss) from
continuing operations
$32,416 39055%
Total net profit/(loss) $36,036 N/a – prior year was a loss
Interim/Final Dividend
Amount per Quoted Equity
Security
3.0 cents
Imputed amount per Quoted
Equity Security
Not Applicable.
Record Date 13 June 2024
Dividend Payment Date 27 June 2024
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.62 $0.46
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Growth in revenue from continuing operations was predominantly
driven by prior period rating increases designed to mitigate the
impacts of inflation, crime and increased reinsurance costs
following the 2023 catastrophe events.

The growth in profit reflected premium growth and improvements
in the management expense ratio; along with the absence of large
events, which had impacted the prior year’s profit.

Please refer to the 2024 interim results announcement
presentation for further information.

Authority for this announcement
Name of person

authorised
to make this announcement
Tania Pearson, General Counsel & Company Secretary
Contact person for this
announcement
Emily Davies, Head of Corporate Affairs and Sustainability
Contact phone number +64 21 815 149
Contact email address emily.davies@tower.co.nz
Date of release through MAP

28 May 2024

---

Tower Limited
Consolidated
interim financial statements
for the half year ended 31 March 2024

Tower Limited
Consolidated interim financial statements
Financial Statements
Consolidated statement of comprehensive income2
Consolidated balance sheet3
Consolidated statement of changes in equity4
Consolidated statement of cash flows5
Notes to the interim financial statements
1Overview6
1.1About this report6
1.2Critical accounting judgements and estimates7
1.3Changes in accounting policies and disclosure7
1.4Segmental reporting9
2Insurance and reinsurance contracts11
2.1Insurance and reinsurance contracts accounting policies11
2.2Insurance and reinsurance contracts15
2.3Reconciliation of insurance assets and liabilities16
2.4Reconciliation of reinsurance assets and liabilities18
3Investments19
3.1Investment income19
3.2Investments19
4Risk Management20
4.1Capital management risk20
5Capital structure21
5.1Contributed equity21
5.2Earnings per share21
6Other balance sheet items22
6.1Intangible assets22
7Other information23
7.1Notes to the consolidated statement of cash flows23
7.2Assets and liabilities held for sale23
7.3Contingent liabilities26
7.4Capital commitments26
7.5Subsequent events26
1

Tower Limited
Consolidated statement of comprehensive income
For the Half Year Ended 31 March 2024Restated
$ thousandsNote31-Mar-2431-Mar-23
Insurance revenue269,434 225,993
Insurance service expense(184,319)(445,668)
Insurance service result before reinsurance contracts held85,115 (219,675)
Net (expense)/income from reinsurance contracts held(44,846)215,185
Insurance service result40,269 (4,490)
Investment income3.110,032 6,435
Investment expense(71)(158)
Net investment income9,961 6,277
Finance expense from insurance contracts issued(3,872)(731)
Finance income from reinsurance contracts held2,167 68
Net insurance finance expense(1,705)(663)
Net insurance and investment result48,525 1,124
Other income778 2,724
Other operating expenses(1,021)(1,259)
Finance costs(498)(462)
Profit before taxation from continuing operations47,784 2,127
Tax expense(15,368)(2,044)
Profit after taxation from continuing operations32,416 83
Profit/(loss) after taxation from discontinued operations7.23,620 (5,135)
Profit/(loss) after taxation for the half year36,036 (5,052)
Items that may be reclassified to profit or loss
Currency translation differences(95)(2,130)
Reclassification of the foreign currency translation reserve - 544
Other comprehensive loss net of tax(95)(1,586)
Total comprehensive income/(loss) for the half year35,941 (6,638)
Earnings per share:
Basic and diluted earnings per share (cents) for continuing operations5.28.5 0.0
Basic and diluted earnings per share (cents) for profit attributable to
shareholders
5.29.5 (1.3)
Profit/(loss) after taxation attributed to shareholders36,036 (5,052)
Total comprehensive income/(loss) attributed to shareholders35,941 (6,638)
The above statement should be read in conjunction with the accompanying notes.
2

Tower Limited
Consolidated balance sheet
As at 31 March 2024RestatedRestated
$ thousandsNote31-Mar-2430-Sep-231-Oct-22
Assets
Cash and cash equivalents7.179,414 64,009 84,502
Investments3.2267,936 258,798 258,634
Receivables32,235 16,797 13,408
Current tax assets13,527 12,917 13,069
Assets classified as held for sale7.25,249 11,505 16,673
Reinsurance contract assets2.290,224 147,236 26,918
Deferred tax assets875 16,074 16,492
Right-of-use assets21,646 23,204 23,326
Property, plant and equipment 6,698 6,280 5,417
Intangible assets6.197,186 98,524 94,653
Total assets614,990 655,344 553,092
Liabilities
Payables19,948 18,378 20,861
Liability for remaining coverage2.245,941 44,614 43,343
Liability for incurred claims2.2169,299 241,195 121,569
Current tax liabilities191 198 136
Liabilities classified as held for sale7.23,373 7,609 5,119
Provisions11,431 12,823 11,873
Lease liabilities30,962 32,615 35,054
Deferred tax liabilities96 178 339
Total liabilities281,241 357,610 238,294
Net assets333,749 297,734 314,798
Equity
Contributed equity5.1460,389 460,315 460,191
Accumulated Losses(22,437)(58,473)(43,942)
Reserves(104,203)(104,108)(101,451)
Total equity333,749 297,734 314,798
The above statement should be read in conjunction with the accompanying notes.
The financial statements were approved for issue by the Board on 28 May 2024.
Michael P StiassnyGraham R Stuart
ChairmanDirector
3

Tower Limited
Consolidated statement of changes in equity
For the Half Year Ended 31 March 2024
$ thousands
Note
Contributed
equity
Accumulated
losses
ReservesTotal Equity
Half year ended 31 March 2024
Balance as at 30 September 2023 (restated)460,315 (58,473)(104,108) 297,734
Comprehensive income
Profit for the half year -36,036-36,036
Currency translation differences - - (95)(95)
Total comprehensive income/(loss)-36,036(95)35,941
Transactions with shareholders
Share rights issued under Tower Long-Term Incentive Plan74 - - 74
Total transactions with shareholders74 - - 74
At the end of the half year460,389 (22,437)(104,203)333,749
Half year ended 31 March 2023
Balance as at 30 September 2022 originally reported460,191 (41,212)(101,451)317,528
Adjustment on initial application of NZ IFRS 17 on 1 Oct 20221.3 -(2,730)-(2,730)
Restated balance at beginning of the period460,191 (43,942)(101,451)314,798
Comprehensive loss (restated)
Loss for the half year -(5,052)-(5,052)
Currency translation differences - - (2,130)(2,130)
Reclassification of foreign currency translation reserve to
profit or loss
- - 544 544
Revaluation surplus transferred to retained earnings-1,707(1,707) -
Total comprehensive loss (restated)-(3,345)(3,293)(6,638)
Transactions with shareholders
Dividends paid-(15,216)-(15,216)
Total transactions with shareholders-(15,216)-(15,216)
At the end of the half year (restated)460,191 (62,503)(104,744)292,944
The above statement should be read in conjunction with the accompanying notes.
Attributed to Shareholders
4

Tower Limited
Consolidated statement of cash flows
For the Half Year Ended 31 March 2024Restated
$ thousandsNote31-Mar-2431-Mar-23
Cash flows from operating activities
Premiums received for insurance contracts issued271,105 233,537
Insurance acquisition costs paid(31,715)(25,257)
Reinsurance paid(47,401)(34,913)
Interest received 8,882 5,182
Fee and other income received2,649 554
Insurance claims paid(213,001)(132,920)
Reinsurance and other recoveries received58,623 11,127
Employee and supplier payments(16,972)(25,429)
Other operating payments(1,060)(1,299)
Income tax paid(665)(988)
Operating activities cash flow from discontinued operations4,899 (10,431)
Net cash inflow from operating activities 35,344 19,163
Cash flows from investing activities
Proceeds from sale of interest bearing investments168,851 333,727
Payments for purchase of interest bearing investments(176,341)(322,427)
Payments for purchase of intangible assets (8,031)(7,509)
Payments for purchase of customer relationships-(5,900)
Proceeds from sale of property, plant & equipment50 5,746
Payments for purchase of property, plant & equipment(1,648)(226)
Net proceeds from sale of discontinued operation7.21,912 2,618
Investing activities cash flow from discontinued operations(44)1,489
Net cash (outflow)/inflow from investing activities (15,251)7,518
Cash flows from financing activities
Dividends paid-(15,213)
Payments relating to lease liabilities(2,698)(3,292)
Financing activities cash flow from discontinued operations(11)(50)
Net cash outflow from financing activities (2,709)(18,555)
Net increase in cash and cash equivalents17,384 8,127
Effect of foreign exchange rate changes(146)(2,636)
Cash and cash equivalents at the beginning of the half year 65,311 91,104
Cash and cash equivalents at the end of the half year 82,549 96,594
Cash from discontinued operations7.23,135 -
Cash and cash equivalents at the end of the half year from continuing
operations
7.179,414 96,594
The above statement should be read in conjunction with the accompanying notes.
5

Tower Limited
Notes to the consolidated financial statements
1
1.1About this Report
a.Entities reporting
b.Statutory base
c.Basis of preparation
d.Accounting policies
e.Re-presentation of comparatives for discontinued operations
All disposal groups together form the "discontinued operations". Profit or loss information for the current period is
prepared on a continuing basis with net results from discontinued operations presented separately. Refer to note
7.2 for further details.
Where necessary, comparative profit or loss information has been reclassified for consistency with the current year
presentation.
The Group's Solomon Islands business (disposal group) was disposed in the half year ended 31 March 2024. The
Vanuatu operations (disposal group) are under a conditional sale agreement and classified as held for sale as at 31
March 2024.
Overview
The interim financial statements for the six months ended 31 March 2024 are unaudited.
This section provides information that is helpful to an overall understanding of the interim financial statements and
the areas of critical accounting judgements and estimates included in the interim financial statements. It also
includes a summary of Tower's operating segments.
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.
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 interim financial statements should be read in conjunction with the annual financial statements for the year
ended 30 September 2023, which have been prepared in accordance with International Financial Reporting
Standards Accounting Standards (IFRS Accounting Standards) and New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS).
The interim financial statements presented are those of Tower Limited and all of its subsidiaries (the "Group"). The
address of the Group's registered office is 136 Fanshawe Street, Auckland, New Zealand.
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 2023, with the exception of the
change in accounting policy as a result of the implementation of NZ IFRS 17 Insurance Contracts as discussed in
note 1.3.
6

Tower Limited
1.2
Premium allocation approach (PAA) eligibilityNote 2.1
Identification of groups of onerous contractsNote 2.1
Risk adjustment and the confidence level usedNote 2.3
Annual Report (30 September 2023) Note 2.9
Annual Report (30 September 2023) Note 6.2
Annual Report (30 September 2023) Note 6.3a(ii)
Annual Report (30 September 2023) Note 7.3
1.3Changes in accounting policies and disclosures
a.New standards and interpretations
Context
Accounting policy change
- Measuring insurance contract assets and liabilities separately from reinsurance contract assets and liabilities.
Critical accounting judgements and estimates
- Insurance and reinsurance contracts
Tower adopted NZ IFRS 17 Insurance Contracts (NZ IFRS 17) from 1 October 2023. Tower has not adopted any other
standard, amendment or interpretation with a material effect on Tower. There are other standards, amendments
and interpretations which have been approved but are not yet effective. The Group expects to adopt other standards
when they become mandatory. None are expected to materially impact the Group's financial statements.
NZ IFRS 17 replaces the guidance in NZ IFRS 4 Insurance Contracts (NZ IFRS 4) and establishes principles for the
recognition, measurement, presentation and disclosure of insurance contracts. There has been no material impact to
Tower's profitability or strategies, with the main impact being on the disclosure and presentation of financial
information.
Tower has applied the PAA to the measurement of all insurance contracts issued and reinsurance contracts held by
Tower. The PAA is a simplified measurement model in comparison with the general model under NZ IFRS 17, which is
similar to the previous measurement model used for general insurance under NZ IFRS 4.
- Intangible assets
- Lease liabilities (incremental borrowing rate)
- Deferred tax
- Customer remediation provision
In preparing these interim financial statements management is required to make estimates and related assumptions
about the future. The estimates and related assumptions are based on experience and other factors that are
considered to be reasonable, and are reviewed on an ongoing basis. Revisions to the estimates are recognised in the
period in which they are revised, or future periods if relevant. The key areas in which estimates and related
assumptions are applied are as follows:
NZ IFRS 17 introduces several new concepts, including:
- Onerous contracts, where losses from unprofitable contracts are recognised when onerous contract testing shows
that the fulfilment cash flows of a group of insurance contracts is likely to be greater than the carrying value of the
liability for remaining coverage (LRC).
- Liability for remaining coverage, which reflects the insurance coverage expected to be provided by Tower after the
reporting date.
- Liability for incurred claims, which reflects the remaining liability for insurance claims that occured prior to the
reporting date, adjusted for the time value of money. The liability also includes an explicit risk adjustment for non-
financial risks.
- Reinsurance asset for remaining coverage, which reflects Tower's reinsurance coverage, adjusted to include a loss-
recovery component for expected recoveries over underlying contracts that are considered to be onerous.
7

Tower Limited
1.3Changes in accounting policies and disclosures (continued)
a.New standards and interpretations (continued)
Impact of accounting policy change
$ thousands
Contributed
equity
Accumulated
losses
Other
reserves
Total equity
Closing balance (30 September 2022)460,191 (41,212)(101,451)317,528
Risk adjustment
1
-(4,761)-(4,761)
Changes in discounting
2
-1,120-1,120
Changes in deferred IACF
3
-(155)-(155)
Tax impact
4
-1,066-1,066
Opening balance under NZ IFRS 17 (1 October 2022)460,191 (43,942)(101,451)314,798
The impact to opening accumulated losses is driven by the following:
- Reinsurance asset for incurred claims, which reflects reinsurance recoveries on claims that occurred prior to the
reporting date, adjusted for the time value of money. The asset also includes an explicit risk adjustment for non-
financial risks.
2
The impact of discounting certain liabilities for incurred claims and reinsurance assets for incurred claims under NZ
IFRS 17 which were not discounted under NZ IFRS 4.
3
The exclusion of non-attributable expenses under NZ IFRS 17 from the deferral of insurance acquisition cash flows
(IACF).
4
The tax impact of the above adjustments against deferred tax assets and liabilities.
Tower has applied the transitional provisions under NZ IFRS 17 and has not disclosed the impact to each financial
statement line item and earnings per share. The impact on equity for transitioning to NZ IFRS 17 is shown in the
table below.
Tower's accounting policy for recognition, classification, measurement, and derecognition of insurance and
reinsurance contracts is explained in note 2.1.
As a result of the adoption of NZ IFRS 17, Tower has identified, recognised, and measured each group of insurance
contracts as if NZ IFRS 17 had always applied. Premium receivable, reinsurance recoveries, deferred insurance costs,
unearned premiums, and outstanding claims are no longer presented on the face of the balance sheet or in the
notes. These are now replaced by liability for remaining coverage, liability for incurred claims, and reinsurance
contract assets.
NZ IFRS 17 requires insurers to retrospectively apply the standard as if it had always been in effect, unless it is
impracticable to do so. Tower has determined that reasonable and supportable information was available for all
contracts in force at the transition date. NZ IFRS 17 has been applied using the full retrospective approach in
accordance with Appendix C of the standard, and the comparative information for the half year ended 31 March
2023 and the year ended 30 September 2023 has been restated.
1
The net impact from the derecognition of risk margin under NZ IFRS 4 and the recognition of risk adjustment on
liability for incurred claims and reinsurance asset for incurred claims under NZ IFRS 17.
8

Tower Limited
1.4Segmental reporting
a.Operating segments
b.Financial performance of continuing operations
$ thousands
New ZealandPacific IslandsOtherTotal
Half year ended 31 March 2024
Insurance revenue248,280 21,154 -269,434
Insurance service expense(169,213)(14,844)(262)(184,319)
Net (expense)/income from reinsurance contracts held(44,407)(489)50(44,846)
Insurance service result34,660 5,821 (212)40,269
Net investment income9,472 489 -9,961
Net insurance finance expense(1,705) - - (1,705)
Net insurance and investment result42,427 6,310 (212)48,525
Other income616 162 -778
Other operating expenses(999)(22)-(1,021)
Finance costs(409)(89)-(498)
Profit/(loss) before taxation from continuing operations41,635 6,361 (212)47,784
Tax expense(11,568)(3,800)-(15,368)
Profit/(loss) after taxation from continuing operations30,067 2,561 (212)32,416
Tower operates in two geographical segments, New Zealand and the Pacific region. New Zealand comprises the
general insurance business underwritten in New Zealand. Pacific Islands comprises the general insurance
business underwritten in the Pacific by Tower subsidiaries and branch operations. Other contains balances
relating to Tower Services Limited and group diversification benefits.
The Group does not derive revenue from any individual or entity that represents 10% or more of the Group's
total revenue.
The financial performance for Pacific Islands operating segment excludes the disposal groups. Intercompany
transactions with the disposal group are eliminated within continuing operations, refer note 7.2.
Information is provided by operating segment to assist an understanding of the Group's performance. Operating
segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker (the Chief Executive Officer) who reviews the operating results on a regular basis and makes
decisions on resource allocation and assessing performance.
9

Tower Limited
1.4Segmental reporting (continued)
b.Financial performance of continuing operations (continued)
$ thousands
New ZealandPacific IslandsOtherTotal
Half year ended 31 March 2023 (Re-presented)
Insurance revenue204,897 21,096 -225,993
Insurance service (expense)/income(443,399)(4,764)2,495 (445,668)
Net income/(expense) from reinsurance contracts held229,283 (11,801)(2,297)215,185
Insurance service result(9,219)4,531 198 (4,490)
Net investment income6,027 250 -6,277
Net insurance finance expense(663)-- (663)
Net insurance and investment result(3,855)4,781 198 1,124
Other income1,409 687 628 2,724
Other operating expenses(1,228)(31)-(1,259)
Finance costs(385)(77)-(462)
(Loss)/profit before taxation from continuing operations(4,059)5,360 826 2,127
Tax (expense)/benefit(1,052)(1,087)95 (2,044)
(Loss)/profit after taxation from continuing operations(5,111)4,273 921 83
c.
Financial position of continuing operations
$ thousands
New ZealandPacific IslandsOtherTotal
Additions to non-current assets
31 March 2024
8,169 38 -8,207
Additions to non-current assets
30 September 2023
24,081 6,319 -30,400
Total assets 31 March 2024578,622 64,658 (33,539)609,741
Total assets 30 September 2023618,213 50,975 (25,349)643,839
Total liabilities 31 March 2024265,720 31,727 (19,579)277,868
Total liabilities 30 September 2023333,896 27,704 (11,599)350,001
Additions to non-current assets include additions to property, plant and equipment, right-of-use assets and
intangible assets.
Total assets and liabilities exclude assets and liabilities held for sale.
10

Tower Limited
2Insurance and reinsurance contracts
This section provides information on Tower's underwriting activities.
2.1Insurance and reinsurance contracts accounting policies
a.Recognition
b.Measurement model - insurance contracts
Tower does not issue any insurance contracts that provide an investment return, or have direct participating contracts,
therefore the VFA does not apply to Tower.
Tower collects premiums from customers in exchange for providing insurance coverage. These premiums are
recognised as insurance revenue when they are earned by Tower, with an insurance contract liability 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 insurance expenses. To ensure that Tower’s obligations to customers are properly recorded
within the financial statements, Tower recognises a liability for incurred claims on the balance sheet.
To manage Tower’s risk and optimise its returns, Tower reinsures some of its exposure with reinsurance companies.
Net expense from reinsurance contracts is measured as reinsurance premiums paid to reinsurers, less any recoveries
from reinsurers.
NZ IFRS 17 contains three measurement models:
1) The general measurement model (GMM) measures insurance contracts based on the fulfilment cash flows (the
present value of estimated future cash flows with an explicit risk adjustment for non-financial risk) and the contractual
service margin (the unearned profit that will be recognised as services are provided over the coverage period)
2) A modified version of the general model (the variable fee approach, or VFA) is applied to insurance contracts with
direct participation features
3) A simplified measurement model (the PAA) is permitted in certain circumstances.
The majority of Tower's insurance portfolios have a coverage period of one year or less, which allows for application of
the PAA. The coverage period, or contract boundary, is the period during which Tower has a substantive obligation to
provide customers with insurance contract services. The substantive obligation ends when Tower can reprice insurance
contracts to reflect reassessed risk.
For any insurance groups with coverage periods greater than one year, Tower has assessed that the resulting liability
for remaining coverage as measured under the PAA would not differ materially from the result of applying the GMM.
Therefore Tower has applied the PAA to all its insurance groups. Refer to note 2.1(i) for discussion around reinsurance
PAA eligibility assessment.
Tower recognises insurance contracts at the earlier of the commencement of the coverage period, or when the first
premium for a group of insurance contracts is due. At inception of insurance contracts, Tower analyses and identifies
any distinct contract components that may need to be accounted for under another NZ IFRS instead of NZ IFRS 17.
Currently, Tower does not have any product groups that include distinct components that require separation.
Insurance revenue is recognised based on passage of time over the coverage period of the contract, resulting in a linear
allocation of revenue for each contract across its coverage period. Revenue earned excludes taxes and levies collected
on behalf of third parties.
Insurance service expenses arising from insurance contracts are generally recognised in profit or loss as they are
incurred, except for insurance acquisition cash flows.
Insurance finance income and expenses comprise changes in the carrying amounts of groups of insurance and
reinsurance contracts arising from the effects of, and changes in, the time value of money and financial risk. Tower has
elected to present all insurance finance income and expenses in profit or loss.
11

Tower Limited
2.1Insurance contracts accounting policies (continued)
c.Level of aggregation
d.Onerous contracts
e.Liability for remaining coverage
Tower manages insurance contracts issued by aggregating them into portfolios. Insurance contracts for product
lines with similar risks that are within the same geographical area, and managed together, are considered to be in
the same portfolio. The geographical areas for portfolio purposes are New Zealand and the Pacific, and within
each geographical area there are a number of separate portfolios based on product type. Each portfolio will
contain annual cohorts which contain contracts that are issued within a financial year. Annual cohorts can be
further disaggregated into three groups at inception: onerous contracts, contracts with no significant risk of
becoming onerous, and the remainder.
The profitability of groups of contracts is assessed by actuarial valuation models. All insurance contracts are
measured under the PAA, and therefore Tower assumes that no contracts in a group are onerous at initial
recognition unless facts and circumstances indicate otherwise.
Subsequent measurement of the carrying amount of the LRC is increased by any premiums received and the
amortisation of insurance acquisition cash flows recognised as expenses, and decreased by the amount
recognised as insurance revenue for services provided and any additional insurance acquisition cash flows
allocated after initial recognition.
On initial recognition of each group of contracts, Tower expects that the time between providing each part of the
services and the related premium due date is no more than a year. Accordingly, Tower has chosen not to adjust
the LRC to reflect the time value of money and the effect of financial risk.
To determine which facts and circumstances are indicative of onerous contracts management considers future
profitability for a group of contracts, as well as factors that may be internal to Tower (e.g., pricing decisions) or
external (e.g., sudden and unexpected changes to the economic or regulatory environments). When facts and
circumstances indicate a set of contracts may be onerous, Tower will perform an additional assessment to
distinguish onerous contracts from non-onerous contracts. Onerous contract testing will involve determining the
estimation of the fulfilment cash flows in relation to that group of onerous contracts.
Tower will recognise a loss in profit or loss for onerous contracts, which is measured as the difference between
fulfilment cash flows related to the remaining coverage of the group using the general model, and liability for the
remaining coverage using the PAA. The increase to the liability for remaining coverage resulting from the
recognition of onerous contracts will be tracked separately as a loss component. In subsequent periods, Tower
will reassess previously onerous contracts then remeasure fulfilment cash flows. The impact from changes in
fulfilment cash flows will be recorded in profit or loss, and the liability for remaining coverage will reflect the
remeasured fulfilment cash flows. When fulfilment cash flows are incurred, they are allocated systematically
between the loss component and the liability for remaining coverage. The systematic allocation is based on the
loss component relative to the total estimated present value of future cash outflows.
The LRC reflects insurance coverage expected to be provided by Tower after the reporting date. This is measured
inclusive of any taxes and levies collected on behalf of third parties. On initial recognition of each group of
contracts, the carrying amount of the LRC is measured as the premiums received less any insurance acquisition
cash flows allocated to the group at that date, and adjusted for any amount arising from the derecognition of any
assets or liabilities previously recognised for cash flows related to the group.
12

Tower Limited
2.1Insurance contracts accounting policies (continued)
f.Insurance acquisition cash flows
g.Liability for incurred claims
h.Insurance modification and derecognition
Insurance acquisition cash flows (IACF) comprise the costs of selling, underwriting and starting a group of
insurance contracts (which are issued or expected to be issued) that are directly attributable to portfolios of
insurance contracts.
Tower derecognises insurance contracts when rights and obligations relating to the contract are extinguished, or
when the contract is modified in a way that would have changed the accounting for the contract significantly had
the new terms been included at contract inception. In such a case a new contract based on the modified terms is
recognised.
Liability for incurred claims (LIC) relate to claims that have occurred prior to reporting date but have not been
paid. This is measured as the present value of the estimated future cash outflows plus a specific risk adjustment
(RA) factor to account for non-financial risks. Tower has elected to discount the LIC to reflect the time value of
money.
Tower has elected to defer IACF and recognise as insurance expenses across the coverage period of contracts
issued, rather than to expense them when incurred. The amortisation period for IACF begins at the later of when
the costs are incurred or when the underlying insurance contracts are recognised, and are expected to be
amortised within 12 months on a straight-line basis.
In each subsequent reporting period, the IACF will be amortised into profit or loss. If facts and circumstances
indicate an asset for IACF may be impaired, an impairment loss will be recognised in profit or loss. Tower will
reverse impairment losses when there are indications the impairment indicators have improved.
All IACF are allocated to groups of insurance contracts. IACF arising before the recognition of the related group of
contracts are recognised as a separate asset. The asset is derecognised when the IACF are included in the
measurement of the group of contracts. All IACF assets will be derecognised within 12 months from reporting
date as Tower does not issue policies in advance for periods in excess of 12 months.
Tower does not disaggregate changes in the RA between the insurance service result and insurance finance
income or expenses. All changes in the RA are included in the insurance service result.
13

Tower Limited
2.1Insurance contracts accounting policies (continued)
i. Measurement model - reinsurance contracts
j. Reinsurance contracts - level of aggregation
k.Reinsurance contract assets - recognition and measurement
Some reinsurance contracts held by Tower have a three year contract boundary, however the result of applying
the PAA model does not result in a material difference from applying the GMM model. Therefore all reinsurance
contracts held by Tower are measured using the PAA measurement model.
Reinsurance asset for incurred claims (RI AIC) is recognised when a claim is made on an underlying contract and
a reinsurance contract was held to cover the risks on the underlying insurance contract. This is measured based
on estimated future cash flows, adjusted to reflect the time value of money, and a RA factor for any non-
financial risks.
Tower manages all reinsurance contracts held together and the contracts held provide coverage for similar risks.
All reinsurance contracts held by Tower are considered as a single portfolio.
Reinsurance asset for remaining coverage (RI ARC) is recognised at the start of the coverage period of the
reinsurance contract where the contract provided non-proportionate coverage, or when the underlying
insurance contract is recognised where the contract provides proportionate coverage. The asset is measured as
premiums paid, adjusted for any acquisition cash flows.
Quantitative PAA eligibility testing has been performed over these contracts, where the following key
assumptions and estimates are modelled:
- Expected future cash flows
- Risk adjustment
- Contractual service margin (CSM), the balancing component to result in nil profit or loss impact at inception.
The CSM represents the net cost of purchasing reinsurance, which will be released over the coverage period.
- Expected variability in assumptions used, such as changes in discount rates
Tower measures its reinsurance assets on the same basis as insurance contracts issued, however these are
adapted to reflect the features of reinsurance contracts held that differ from insurance contracts held.
This loss-recovery component is adjusted to reflect changes in the loss component of the onerous group of
underlying contracts and is further adjusted, if required, to ensure that it does not exceed the portion of the
carrying amount of the loss component of the onerous group of underlying insurance contracts that Tower
expects to recover from the reinsurance contracts held.
A loss-recovery component is established within the RI ARC for the gain recognised in profit or loss when the
Group has recognised a loss on underlying groups of onerous contracts that are covered by reinsurance
contracts held. The gain is calculated by multiplying the loss recognised on underlying insurance contracts by the
percentage of claims on underlying insurance contracts that the Group expects to recover from the reinsurance
contracts held that are entered into before or at the same time as the loss is recognised on the underlying
insurance contracts.
14

Tower Limited
2.1Insurance contracts accounting policies (continued)
k.Reinsurance contract assets - recognition and measurement (continued)
l.Discount rates
2.2
Insurance and reinsurance contracts
$ thousandsAssetsLiabilitiesNet
Current
portion
Non-
current
portion
Total
-45,94145,941 45,941 -45,941
-169,299169,299 137,604 31,695 169,299
-215,240215,240 183,545 31,695 215,240
90,224 -90,22478,707 11,517 90,224
$ thousandsAssetsLiabilitiesNet
Current
portion
Non-
current
portion
Total
-44,61444,614 44,614 -44,614
241,195241,195 198,860 42,335 241,195
-285,809285,809 243,474 42,335 285,809
147,236 -147,236125,567 21,669 147,236
Net (expense)/income from reinsurance contracts held is measured as an allocation of reinsurance premiums
paid plus any other directly attributable expenses, less amounts recovered from reinsurers, and any change in risk
from reinsurer non-performance.
Reinsurance premiums paid reflect premiums ceded to reinsurers and are recognised as an expense in accordance
with the pattern of reinsurance service received. Commission revenue from reinsurance contracts held by Tower
that are not contingent on claims for underlying insurance contracts is treated as a reduction in premiums paid.
Tower also has profit-share commission arrangement for some proportional reinsurance contracts, where the
commission is contingent on claims. Commission from the profit-share arrangements will offset against RI claims
recoveries in RI AIC.
Amounts recovered from reinsurers are recognised when a claim has been incurred and the basis for
measurement is the expected future cash inflows.
Liability for remaining coverage
Tower has elected to discount future cash flows related to insurance liabilities for incurred claims and reinsurance
assets for incurred claims to recognise the impact of the time value of money. Tower has adopted a 'bottom-up'
approach to derive the discount rate. The risk-free yield is derived from observable secondary market prices for
NZ government bonds. Nil illiquidity premium has been assumed on the basis that it would not have a material
impact.
Total reinsurance contracts held
Total insurance contracts issued
Total reinsurance contracts held
As at 31 March 2024
As at 30 September 2023
Liability for remaining coverage
Liability for incurred claims
Total insurance contracts issued
Liability for incurred claims
15

Tower Limited
2.3Reconciliation of insurance assets and liabilities
a.Reconciliation of insurance assets and liabilities
As at 31 March 2024
$ thousands
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
adjustment
Opening insurance contract liabilities43,994 620 223,565 17,630 285,809
Insurance revenue(269,435) - - - (269,435)
Insurance service expense:
Incurred claims and other insurance service expenses - - 158,736 5,427 164,163
Amortisation of IACF30,333 - - - 30,333
Changes relating to past service - - (14,451)(8,265)(22,716)
Losses and reversals on onerous contracts-(26) - - (26)
Finance expense from insurance contracts issued - - 3,872 -3,872
Effect of movements in exchange rates(15)(2)(26)-(43)
Amounts included in comprehensive income(239,117)(28)148,131(2,838)(93,852)
Cash flows:
Premiums received271,105 - - - 271,105
Claims and other other insurance service expenses paid- - (229,973)-(229,973)
Insurance acquisition cash flows(31,715) - - - (31,715)
Amounts included in statement of cash flow239,390 -(229,973)-9,417
Pre-recognition cash flows derecognised and other changes1,082 -12,784-13,866
Insurance contract liabilities at 31 March 202445,349 592 154,507 14,792 215,240
Total
Liabilities for remaining
coverage
Liabilities for incurred claims
16

Tower Limited
2.3Reconciliation of insurance assets and liabilities (continued)
a.Reconciliation of insurance assets and liabilities (continued)
As at 30 September 2023
$ thousands
Excluding loss
component
Loss
component
Estimates of
the present
value of future
cash flows
Risk
adjustment
Opening insurance contract liabilities43,343 -105,32116,248 164,912
Insurance revenue(472,611) - - - (472,611)
Insurance service expense:
Incurred claims and other insurance service expenses - - 516,677 8,064 524,741
Amortisation of IACF54,000 - - - 54,000
Changes relating to past service - - 8,887 (6,546)2,341
Losses and reversals on onerous contracts-607 - - 607
Finance expense from insurance contracts issued - - 1,511 -1,511
Effect of movements in exchange rates265 13 444 -722
Amounts included in comprehensive income(418,346)620 527,519 1,518 111,311
Cash flows:
Premiums received482,701 - - - 482,701
Claims and other other insurance service expenses paid - - (420,279)-(420,279)
Insurance acquisition cash flows(58,441) - - - (58,441)
Amounts included in statement of cash flow424,260 -(420,279)-3,981
Pre-recognition cash flows derecognised and other changes(5,263)-11,004(136)5,605
Insurance contract liabilities at 30 September 202343,994 620 223,565 17,630 285,809
b.Critical accounting estimates and judgements
Risk adjustment (RA)
Tower uses the cost of capital method to derive the overall risk adjustment for non-financial risk. In the cost of capital
method, the risk adjustment is determined by applying a cost rate to the value of projected capital relating to non-financial
risk. A required return of capital of 12.5%, net of reinsurance, has been used for assessing risk adjustment for LIC and LRC
balances. The resulting risk adjustment corresponds to outcomes expected with a 72.5% to 90% confidence level,
depending on the class of business. A diversification benefit is included to reflect the diversification of risk across countries,
reflecting the compensation that the entity requires.
Liabilities for remaining
coverage
Liabilities for incurred claims
Total
The Group determines the risk adjustment for non-financial risk at the Group level and allocates it to groups of insurance
and reinsurance contracts in a systematic and rational way.
The risk adjustment is the compensation Tower requires for bearing uncertainty about the amount and timing of the cash
flows that arises from non-financial risk related to a group of insurance contracts.
The determination of the appropriate level of risk adjustment takes into account:
- the level of economic capital that Tower requires to support the insurance business and the weighted average cost of
servicing that capital;
- the run-off profile and term to settlement of the net discounted cash flows;
- class of business; and
- the benefit of diversification between geographic locations.
17

Tower Limited
2.4Reconciliation of reinsurance assets and liabilities
$ thousands
Excluding loss
recovery
component
Loss recovery
component
Estimates of
the present
value of future
cash flows
Risk
adjustment
Half year ended 31 March 2024
(4,229)-146,3275,138 147,236
(38,220) - - - (38,220)
- - 6,783 687 7,470
- - (10,944)(3,152)(14,096)
- - 2,167 -2,167
2 -1-3
(38,218)-(1,993)(2,465)(42,676)
47,401 - - - 47,401
- - (58,623)-(58,623)
47,401 -(58,623)-(11,222)
(166)-(2,948)-(3,114)
4,788 -82,7632,673 90,224
Year ended 30 September 2023
4,917 -21,805196 26,918
(79,746) - - - (79,746)
- - 201,356 5,815 207,171
- - (2,198)(866)(3,064)
- - 162 -162
(139)-(66)-(205)
(79,885)-199,2544,949 124,318
69,508 - - - 69,508
- - (78,487)-(78,487)
69,508 -(78,487)-(8,979)
1,231 -3,755(7)4,979
(4,229)-146,3275,138 147,236
Finance income from reinsurance contracts held
Other changes within balance sheet
Amounts included in comprehensive income
Premiums paid net of ceding commissions
Reinsurance recoveries (net of profit share commissions)
Amounts included in statement of cash flow
Cash flows:
Reinsurance contract assets at 31 March 2024
Opening reinsurance contract assets
Assets for remaining coverage
Amounts recoverable on
incurred claims
Total
Opening reinsurance contract assets
Reinsurance premiums
Amounts recoverable from reinsurers:
Amounts recoverable for incurred claims
Changes relating to past service
Effect of movements in exchange rates
Reinsurance premiums
Amounts recoverable from reinsurers:
Amounts recoverable for incurred claims
Changes relating to past service
Finance income from reinsurance contracts held
Effect of movements in exchange rates
Amounts included in comprehensive income
Cash flows:
Premiums paid net of ceding commissions
Reinsurance recoveries (net of profit share commissions)
Other changes within balance sheet
Amounts included in statement of cash flow
Reinsurance contract assets at 30 September 2023
18

Tower Limited
3Investments
3.1Investment income
$ thousands31-Mar-2431-Mar-23
Interest income8,032 5,589
Net realised gain/(loss)1,011 (6,196)
Net unrealised gain989 7,042
Investment income10,032 6,435
3.2Investments
Level 1
Level 2
Level 3
$ thousandsLevel 1Level 2Level 3Total
As at 31 March 2024
Fixed interest investments-267,902-267,902
Property investment - 34 - 34
Investments-267,936-267,936
As at 30 September 2023
Fixed interest investments-258,764-258,764
Property investment - 34 - 34
Investments-258,798-258,798
Tower invests funds collected as premiums and provided by shareholders to ensure it can meet its obligations to
pay claims and expenses and to generate a return to support its profitability. Tower has a low risk tolerance and
therefore the majority of its investments are in investment grade supranational and government bonds, and term
deposits.
There have been no transfers between levels of the fair value hierarchy during the current period (2023: nil).
Tower designates its investments at fair value through profit or loss in accordance with its Treasury policy. It
categorises its investments into three levels based on the inputs available to measure fair value:
Fair value is calculated using quoted prices in active markets. Tower currently does
not have any Level 1 investments.
Investment valuations are based on direct or indirect observable data other than
quoted prices included in Level 1. Level 2 inputs include: (1) quoted prices for similar
assets or liabilities; (2) quoted prices for assets or liabilities that are not traded in an
active market; or (3) other observable market data that can be used for valuation
purposes. Tower investments included in this category include government and
corporate debt, where the market is considered to be lacking sufficient depth to be
considered active, and part ownership of a property that is rented out to staff.
Investment valuation is based on unobservable market data. Tower currently does not
have any Level 3 investments.
(
19

Tower Limited
4Risk Management
4.1Capital management risk
a.Regulatory solvency capital
$ thousands
ParentGroupParentGroup
307,243 326,770 145,421 174,734
190,148 186,286 91,634 99,729
117,095 140,484 53,787 75,005
162%175%159%175%
Tower is exposed to multiple risks as it works to set things right for its customers and their communities whilst
maximising returns for its shareholders. Everyone across the organisation is responsible for ensuring that Tower's
risks are managed and controlled on a day-to-day basis.
As at 31 March 2024
Tower has applied the RBNZ’s new Interim Solvency Standard (ISS) from 1 October 2023.
Tower has calculated the above solvency position in accordance with the current published ISS. This is the mandatory
regulatory solvency position required until any amendments are issued and effective. A second amendment to the ISS
is proposed by RBNZ and is not expected to be issued and effective within the current financial year.
Tower is required to maintain a solvency margin of at least $15m (2023: $15m), due to a licence condition issued by
the RBNZ. This has been included in the adjusted prescribed capital requirement, adjusted solvency margin and
adjusted solvency ratio for 31 March 2024.
As at 30 September 2023
Tower Limited's Group and Parent solvency margin are illustrated in the table below.
Solvency capital (2023: Actual solvency capital)
Adjusted prescribed capital requirement (2023: Minimum
solvency capital)
Adjusted solvency margin (2023: Solvency margin)
Adjusted solvency ratio (2023: Solvency ratio)
The 30 September 2023 comparative is per the prior period audited financial statements in accordance with the
RBNZ's Non-Life Solvency Standard (NLSS) which was applicable until 30 September 2023.
(
20

Tower Limited
5Capital Structure
5.1Contributed equity
$ thousands31-Mar-2430-Sep-23
Opening balance460,315 460,191
Share rights issued under Tower Long-Term Incentive Plan74 124
Total contributed equity460,389 460,315
Represented by:
Opening balance (number of shares)379,483,987 379,483,987
Total shares on issue379,483,987 379,483,987
5.2
Earnings per share
31-Mar-2431-Mar-23
32,416 83
3,620 (5,135)
36,036 (5,052)
379,483,987 379,483,987
Basic and diluted earnings per share (cents) for continuing operations8.5 0.0
Basic and diluted earnings per share (cents)9.5 (1.3)
Ordinary shares issued by the Company 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.
This section provides information about how Tower finances its operations through equity. Tower's capital
position provides financial security to its customers, employees and other stakeholders whilst operating within
the capital requirements set by regulators.
Profit from continuing operations attributable to shareholders ($ thousands)
Profit/(loss) from discontinued operations attributable to shareholders ($
thousands)
Weighted average number of ordinary shares for basic and diluted earnings per
share (number of shares)
The basic and diluted average numbers of ordinary shares shown above are used for calculating all earnings per share
measures including those for profit after tax from discontinued operations (note 7.2).
Total profit/(loss) attributable to shareholders ($ thousands)
21

Tower Limited
6
Other balance sheet items
6.1Intangible assets
As at 31 March 2024
$ thousandsGoodwillSoftware
Customer
relationships
Total
Composition:
Cost17,744 98,613 40,674 157,031
Accumulated amortisation-(39,872)(19,973)(59,845)
Intangible assets17,744 58,741 20,701 97,186
Reconciliation:
Opening balance17,744 57,326 23,454 98,524
Amortisation-(6,587)(2,753)(9,340)
Additions-8,049-8,049
Disposals-(47)-(47)
Closing Balance17,744 58,741 20,701 97,186
As at 30 September 2023
Composition:
Cost17,744 94,215 40,645 152,604
Accumulated amortisation-(36,889)(17,191)(54,080)
Intangible assets17,744 57,326 23,454 98,524
Reconciliation:
Opening balance17,744 53,458 23,451 94,653
Amortisation-(11,430)(5,897)(17,327)
Additions-17,5265,900 23,426
Disposals-(256)-(256)
Transfers to property, plant and equipment-(1,972)-(1,972)
Closing Balance17,74457,32623,45498,524
During the year ended 30 September 2023, additions to software assets primarily related to continued investment in
Tower’s core insurance platform, while additions to customer relationships related to the acquisition of Kiwibank’s
rights and obligations relating to servicing a portfolio of insurance policies underwritten by Tower.
This section provides information about assets and liabilities not included elsewhere.
During the half year ended 31 March 2024, additions to software assets primarily related to continued investment in
Tower’s core insurance platform and website, and digitisation of claims processes.
22

Tower Limited
7
7.1
$ thousands31-Mar-2430-Sep-2331-Mar-23
Cash at bank47,007 42,068 60,522
Deposits at call32,407 21,941 36,072
Cash and cash equivalents79,414 64,009 96,594
7.2Assets and liabilities held for sale
Details of the sale transaction
$ thousands29-Jan-24
Right-of-use assets34
Property, plant and equipment64
Total assets at the date of disposal98
Payables98
Liability for remaining coverage220
Lease liabilities34
Provisions11
Total liabilities at the date of disposal363
Net liabilities at the date of disposal(265)
Net cash consideration received less costs of disposal1,912
Gain on sale (2,177)
On 29 January 2024 Tower completed the sale of its Solomon Islands business to Trans Pacific Assurance Limited
for a sale price of SBD 18.2m (NZD 3.3m).
The activities of the business have been reported in the current period, and as at 30 September 2023, as a
discontinued operation.
Financial information on this disposal is set out below. The gain on sale in the table below is subject to
finalisation of completion accounting.
Other information
This section includes additional required disclosures.
Notes to the Consolidated Statement of Cash Flows
Composition
Tower operates in countries in the Pacific Islands that are subject to foreign exchange restrictions, which may
restrict the ability for immediate use of cash by the parent or other subsidiaries. As at 31 March 2024, this
included NZD 8.9m held in Papua New Guinea and NZD 3.5m held in the Solomon Islands following the sales of
the disposal groups (2023: NZD 8.9m). This cash is not currently available for use by the Group.
The average interest rate at 31 March 2024 for deposits at call is 4.67% (2023: 4.65%).
23

Tower Limited
7.2Assets and liabilities held for sale (continued)
Assets and liabilities classified as held for sale
$ thousands31-Mar-2430-Sep-23
Assets classified as held for sale
Cash and cash equivalents3,135 1,302
Investments-820
Receivables*73 3,356
Current tax assets-147
Reinsurance contract assets1,993 5,635
Deferred tax assets-44
Right-of-use assets34 110
Property, plant and equipment14 91
Total assets classified as held for sale5,249 11,505
Liabilities classified as held for sale
Payables*528 160
Liability for remaining coverage747 2,054
Liability for incurred claims1,994 5,121
Provisions70 155
Lease liabilities34 119
Total liabilities classified as held for sale3,373 7,609
Net assets classified as held for sale1,876 3,896
* As at 31 March 2024, other members of the Tower Group owed disposal groups $0.2m (30 September 2023:
$3.2m). The assets and liabilities from discontinued operations disclosed above are stated without adjustment for
these intercompany transactions.
The currency translation reserve in relation to the discontinued operations as at 31 March 2024 held a gain of
$0.2m (30 September 2023: nil).
On 16 January 2024 Tower announced the conditional sale of its Vanuatu subsidiary to Capital Insurance Group of
Papua New Guinea for the sale price of around NZD 1.6m, subject to adjustment at the completion date for the sale.
The transaction is expected to be completed within 12 months from the reporting date.
The comparatives presented in the table below include the assets and liabilities of the Solomon Islands business and
the Vanuatu subsidiary.
The Vanuatu operations are classified as discontinued operations and are classified as held for sale as at 31 March
2024. The subsidiary's operations were part of the Pacific operating segment.
24

Tower Limited
7.2Assets and liabilities held for sale (continued)
Profit/(loss) from discontinued operations
$ thousands31-Mar-2431-Mar-23
Insurance revenue4,107 5,353
Insurance service expense902 (41,070)
Insurance result before reinsurance contracts held5,009 (35,717)
Net (expense)/income from reinsurance contracts held(3,593)25,580
Insurance service result1,416 (10,137)
Investment income9 11
Net Insurance and investment result1,425 (10,126)
Other income342 2
Other operating expenses(48)(24)
Finance costs(2)(5)
Profit/(loss) before taxation1,717 (10,153)
Tax expense(274)2,806
Profit/(loss) after taxation from discontinued operation1,443 (7,347)
Gain on sale of the subsidiary2,177 2,212
Profit/(loss) from discontinued operations3,620 (5,135)
Earnings per share
31-Mar-2431-Mar-23
Basic and diluted earnings per share (cents) for discontinued operations1.0 (1.4)
Disposal groups paid fees to other members of the Tower Group of $1.1m during the half year ended 31 March 2024
(2023: $1.4m), relating to the provision of reinsurance, management and other services. These amounts are included
within the net expense from reinsurance contracts held and insurance service expense lines above, and are then
eliminated within continuing operations.
The currency translation differences recognised in other comprehensive income during the half year ended 31
March 2024 in relation to the discontinued operations, including reclassification adjustments, were nil (2023: nil).
Insurance service expense includes $1.1m claims income (2023: $8.4m claims expense) incurred by the parent
company under an internal reinsurance treaty with its Vanuatu subsidiary.
The comparatives presented in the table below include the profit or losses of the Solomon Islands business, the
Vanuatu subsidiary and the Papua New Guinea subsidiary (sale completed during the half-year ended 31 March
2023) .
25

Tower Limited
7.3Contingent liabilities
Claims and disputes
7.4
Capital commitments
7.5
Subsequent events
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.
As at 31 March 2024, Tower has nil capital commitments (2023: nil).
On 28 May 2024, the Board approved an interim dividend of 3.0 cents per share, with the dividend being payable on
27 June 2024. The anticipated cash impact of the interim dividend is approximately $11.4m. There were no other
subsequent events.
26

Independentauditor’sreviewreport
TotheshareholdersofTowerLimited
Reportontheconsolidatedinterimfinancialstatements
Ourconclusion
WehavereviewedtheconsolidatedinterimfinancialstatementsofTowerLimited(theCompany)and
itssubsidiaries(theGroup),whichcomprisetheconsolidatedbalancesheetasat31March2024,and
theconsolidatedstatementofcomprehensiveincome,theconsolidatedstatementofchangesinequity
andtheconsolidatedstatementofcashflowsforthesixmonthperiodendedonthatdate,andnotes,
comprisingmaterialaccountingpolicyinformationandotherexplanatoryinformation.
Basedonourreview,nothinghascometoourattentionthatcausesustobelievethatthe
accompanyingconsolidatedinterimfinancialstatementsoftheGroupdonotpresentfairly,inall
materialrespects,thefinancialpositionoftheGroupasat31March2024,anditsfinancial
performanceandcashflowsforthesixmonthperiodthenended,inaccordancewithInternational
AccountingStandard34InterimFinancialReporting(IAS34)andNewZealandEquivalentto
InternationalAccountingStandard34InterimFinancialReporting(NZIAS34).
Basisforconclusion
WeconductedourreviewinaccordancewiththeNewZealandStandardonReviewEngagements
2410(Revised)ReviewofFinancialStatementsPerformedbytheIndependentAuditoroftheEntity
(NZSRE2410(Revised)).OurresponsibilitiesarefurtherdescribedintheAuditor’sresponsibilitiesfor
thereviewoftheconsolidatedinterimfinancialstatementssectionofourreport.
WeareindependentoftheGroupinaccordancewiththerelevantethicalrequirementsinNew
Zealandrelatingtotheauditoftheannualfinancialstatements,andwehavefulfilledourotherethical
responsibilitiesinaccordancewiththeseethicalrequirements.Otherthaninourcapacityasauditor
andprovidersofassuranceservicesoversolvencyandregulatoryreturns,wehavenorelationship
with,orinterestsin,theGroup.CertainpartnersandemployeesofourfirmmaydealwiththeGroup
onnormaltermswithintheordinarycourseoftradingactivitiesoftheGroup.Theseservicesandthis
matterhavenotimpairedourindependenceasauditoroftheGroup.
ResponsibilitiesoftheDirectorsfortheconsolidatedinterimfinancialstatements
TheDirectorsoftheCompanyareresponsibleonbehalfoftheCompanyforthepreparationandfair
presentationoftheseconsolidatedinterimfinancialstatementsinaccordancewithIAS34andNZIAS
34andforsuchinternalcontrolastheDirectorsdetermineisnecessarytoenablethepreparationand
fairpresentationoftheconsolidatedinterimfinancialstatementsthatarefreefrommaterial
misstatement,whetherduetofraudorerror.
Auditor’sresponsibilitiesforthereviewoftheconsolidatedinterimfinancialstatements
Ourresponsibilityistoexpressaconclusionontheconsolidatedinterimfinancialstatementsbasedon
ourreview.NZSRE2410(Revised)requiresustoconcludewhetheranythinghascometoour
attentionthatcausesustobelievethattheconsolidatedinterimfinancialstatements,takenasawhole,
arenotpreparedinallmaterialrespects,inaccordancewithIAS34andNZIAS34.
AreviewofconsolidatedinterimfinancialstatementsinaccordancewithNZSRE2410(Revised)isa
limitedassuranceengagement.Weperformprocedures,primarilyconsistingofmakingenquiries,
primarilyofpersonsresponsibleforfinancialandaccountingmatters,andapplyinganalyticalandother
reviewprocedures.Theproceduresperformedinareviewaresubstantiallylessthanthoseperformed
inanauditconductedinaccordancewithInternationalStandardsonAuditingandInternational
StandardsonAuditing(NewZealand)andconsequentlydoesnotenableustoobtainassurancethat
wemightidentifyinanaudit.Accordingly,wedonotexpressanauditopinionontheseconsolidated
interimfinancialstatements.
PricewaterhouseCoopers,PwCTower,15CustomsStreetWest,PrivateBag92162,Auckland1142,NewZealand
T:+6493558000,www.pwc.co.nz

Who we report to
This report is made solely to the Company’s shareholders as a body. Our review work has been
undertaken so that we might state those matters which we are required to state to them in our review
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the shareholders, as a body, for our review procedures, for this
report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is
Lisa Crooke.
For and on behalf of
Chartered AccountantsAuckland
28 May 2024
PwC
28

---

Tower
2024 Half
Year Results
1 October 2023 to
31 March 2024
28 May 2024

2
Chairman’s update
Michael Stiassny, Chairman
Business update
Blair Turnbull, Chief Executive Officer
HY24 financial performance
Paul Johnston, Chief Financial Officer
Looking forward
Blair Turnbull, Chief Executive Officer
Agenda

3
Chairman’s update
1. Delivering shareholder value
•Improved capital position; interim 3 cent per share dividend declared
•Any unused portion of the large events allowance at year end will increase underlying NPAT, and improve the
full year result
•Strategic review remains ongoing with a range of options being considered to maximise shareholder value
2. Insurance remains critical
•$4b claims cost for 2023 catastrophe events reinforces importance of insurance toNZ communities
•Tower will continue to develop innovative offerings in response to climate change and affordability
3. Tower is well positioned
•Risk-based pricing underpinscompetitive positioning and enhanced underwritingcapability
•Continued improvement in digital and operational efficiency, and enhanced expense control
Strong business performance driven by focus on strategy and operational delivery

4
Business update
Blair Turnbull,
Chief Executive Officer

5
Results summary
•Continued targeted premium growth​
•Continued improvement in MER​, achieved through
operational and digital efficiencies
•Claims ratio reduceddue to lower claims frequency and
operational improvements
•No large events
•Solvency position improved
•3 cent per share interim dividend

6
3 cents per share
vs no dividend in HY23
Dividend
Interim FY24 dividend
49.7%
vs 51.1% in HY23
Our performance
Positive operational and business performance
BAU claims ratio
(Business as usual)
MER
(Management expense ratio)
31.3%
vs 35.0% in HY23
Large event costs
(including reinsurance reinstatement)
-$1.9m
vs $37.3m in HY23
Reported profit
$36.0m
vs $5.1m loss in HY23
Prior year metrics have been restated to align to IFRS 17 for consistent comparisons
Note 1: Adjusted to exclude sold/held for sale portfolios: Papua New Guinea, Solomon Islands, Vanuatu, and NZ Rural
Note 2: Large event costs are a negative in HY24 due to a release of prior year events. No events incurred in the reporting period
Note 3: Definition of underlying profit and a reconciliation to reported profit is included in the appendix
GWP growth
(Gross written premium)
20% | $291m
vs $245m in HY23
1
$36.6m
vs $3.7m loss in HY23
Underlying profit
309,000
vs 312,000 in HY23
Customers
1
3
2

7
Continued premium growth
•20% GWP growth vs same period prior year
•House and Contents product mix at 50% (HY23: 48%)
•House GWP growth; 83% rate, 17% volume
•55% of motor cancellations are single policy motor
•NZ retention stable at 77%(78% Mar 2023)
•50% of customers have multiple policies
G R O S S W R I T T E N P R E M I U M
($m) ROLLING 12 MONTHS
1
Note 1: Adjusted to exclude sold/held for sale portfolios: Papua New Guinea, Solomon Islands, Vanuatu, and NZ Rural
Note 2: Excludes sale of rural portfolio
Other products include Marine, Travel, Pet, Liability, and Workers Compensation
2

8
P A R T N E R S H I P S G W P ( $ m )
P A C I F I C G W P ( $ m )
Business unit distribution
•House new risks sold +14% vs HY23
•54% of Tower Direct customers hold
multiple policies (HY23: 52%)
•Total in force risks increased 6% to
106,000
•Advisor network grew 36% to 3,000
•Solomon Islands business sale
completed in HY24, Vanuatu sale
expected to complete in FY24
•Parametric insurance live in Fiji,
Tonga and Samoa
PARTNERSHIPS
TOWER DIRECT
PACIFIC
1
T O W E R D I R E C T G W P ( $ m )
T O W E R D I R E C T G W P ($m)
ROLLING 12 MONTHS
P A R T N E R S H I P S G W P ($m)
ROLLING 12 MONTHS
P A C I F I C G W P ($m)
ROLLING 12 MONTHS

9
Customer experience improves
N Z S E R V I C E & C L A I M S T A S K S O N L I N E
•NPS improved to 31% (Sep-23: 28%); NZ sales online
NPS at 52%
•Sales & service abandonment rate improved to 7%
(HY23: 16%)
•Digital service transactions up to 57%
•Active users of My Tower increased by 10% to 156k
•Substantial progress made in multi-policy discount
customer remediation. $8.6m excl GST paid as at 30
April 2024
Note: 1:Rolling 12 months
1

10
Continued improvement in MER
MANAGEMENT EXPENSE RATIO
•MER further improved to 31.3%
•Achieving scale with targeted premium growth and
lower than inflation increase in expenses
•Suva hub answering 50% of NZ sales and service calls
•Streamlining the business; sale of Solomon Islands
and NZ rural, sale of Vanuatu pending regulatory
approval
•Commission ratio at 1.6% down from 2.5%, partly due
to legacy portfolio purchases and transition to referral
arrangements
Note: 1:Rolling 6 months. Calculated using management expenses and net commission expense divided by net insurance revenue
Note 2: Commission ratio for the comparative period has been restated due to adoption of IFRS17 which treats a portion of commission revenue as insurance revenue
1
2

11
BAU claims ratio back within target range
Key drivers have improved BAU claims from second half 2023 peak
•Effective pricing and underwriting
•Targeted rating reduced claims from high-risk assets
•Rating for inflation and reinsurance earning through
•Faster and more efficient claims management
•Digital journey - 50% of motor claims automatically
allocated to repair network (H2 23: 10%)
•Increasing internal assessing – 80% across motor
and house (vs 60% in H2 23)
•External factors improved
•Calmer weather reduced house and Pacific claims
•Motor theft frequency reduced
BAU CLAIMS RATIO
BAU CLAIMS RATIO
1
1
Note: 1:Rolling 6 months. BAU claims defined as those not a large event (large events are defined as having a cost to Tower of $2m or more, with lodged claims from two or more policyholders).
BAU claims is calculated using BAU claims expense divided by net insurance revenue
Note 2: Internal assessing includes straight through to repairer/builder, where no external assessing fee is applied
2

12
Business performance continues to improve
•Underlying NPAT excluding large events was
$35m for HY24
•Underlying business performing well and
improving year on year
•Investment income benefiting from higher interest
rates
U N D E R L Y I N G N P A T
E X C L U D I N G L A R G E E V E N T S ( $ m )

Financial
performance
Paul Johnston,
Chief Financial Officer

14
Group underlying financial performance
•Premium growth of 20%
•BAU loss ratio of 49.7% reduced due to targeted rate
increases and operational improvements
•No FY24 large events in HY24; favourable release of $1.9m
on FY23 Vanuatu Cyclones
•Management expense ratio improved to 31.3% as a result of
business growth and expense efficiencies
•Net investment income increased $3.7m due to higher
yields
•HY24 Underlying NPAT including large events of $36.6m
•Reported profit of $36.0m
Note 1: Adjusted to exclude sold/held for sale portfolios: Papua New Guinea, Solomon Islands, Vanuatu, and NZ Rural
Note 2: Definition of underlying profit and a reconciliation to reported profit is included in the appendix
1
1
2

15
•Underlying NPAT of $36.6m, vs loss of $3.7m HY23
•No large events in HY24 vs $37.3m in HY23
•Business growth includes higher gross written premium
and a lower BAU loss ratio from reduced motor theft
frequency, calmer weather, and reduction in open claims
•Increase in expenses driven by inflationary increases
partially offset by cost efficiencies
•Reported profit impacted by change in CEQ valuation,
increased customer remediation provision, and other non-
underlying costs partially offset by the gain on sale of
Solomon Islands business
Movement in underlying NPAT
Note 1: Definition of underlying profit and a reconciliation to reported profit is included in the appendix
1
$0m

16
BAU claims ratio reduced
N Z M O T O R S E V E R I T Y & F R E Q U E N C Y
•High inflation and supply chain capacity constraints continuing
to impact cost of claims (severity)
•Motor theft frequency starting to reduce from peak in FY23
•Calmer weather in comparison to HY23 lowered house
frequency
Note 1: Severity is defined as the cost of claims (excluding large events, large house, windscreen) divided by the count of claims
Note 2: Frequency is defined as the number of claims (same exclusions as above) divided by risks in force
The historical severity and frequency numbers are updated to the current estimates as at 31 March 2024 reflecting development of prior year claims in their respective incurred periods
N Z H O U S E S E V E R I T Y & F R E Q U E N C Y
T O T A L C L A I M S R A T I O
1
2

17
Continued improvement in management expense ratio
M O V E M E N T I N M A N A G E M E N T E X P E N S E
R A T I O ( M E R )
•MER reduced 3.7% to 31.3%
•Business growth contributes 4.7% reduction
in MER
•Net commission contributed 0.5% decrease
in MER due to the purchase of legacy
portfolios
•Amortisation increases from investment
spend and legacy portfolio purchases
•Inflation impact on staff and other costs are
partially offset by cost efficiencies

18
Higher investment returns as yields have increased
Note 1: Core investment portfolio refers to Tower’s fixed income investment portfolio in NZ. It excludes cash held for operational purposes in NZ and cash and short-term deposits held by Tower’s
Pacific subsidiaries. Subsidiaries of banking groups with a credit rating have been grouped under their parent bank’s credit rating, even if unrated themselves
•Net investment income (NII) $10.0m in HY24, $3.7m higher than same period last year
•Running yield on the core investment portfolio is 5.67% as at 31 March 2024
•Conservative investment strategy with low duration (target of 0.5 years)
•Outlook for investment income is to remain stable across second half
I N V E S T M E N T A S S E T P R O F I L E
1
C O R E I N V E S T M E N T P O R T F O L I O
Y I E L D

19
Reinsurance programme supports resilience
HY24
•No large events recorded in HY24
FY24
•Catastrophe reinsurance of up to $750m for two
events. Reinsurance cover was reduced from$889m
in FY23following EQC cap change
•Additional prepaid third event catastrophe cover up
to $75m with $20m retention
•FY24 retention limits and programme premium
increases mitigated due to 3 year rolling contracts
•Full utilisation of $45m large event allowance for
FY24 events assumed in guidance
$750m
$75m
1st Cat loss
(retention $16.9m)
2nd Cat loss
(retention $16.9m)
1st Cat event2nd Cat event3rd Cat event
3rd Cat loss
(retention $20m)
Reinsurance
coverage of
$733.1m
Reinsurance
coverage of
$733.1m
Reinsurance
coverage of
$55m

20
Capital and solvency position
Note 1: SR = Solvency ratio – the ratio of actual solvency capital to minimum solvency capital (NLSS), the ratio of solvency capital to adjusted prescribed capital (ISS)
T O W E R S O L V E N C Y
N Z P A R E N T ( $ m )
1
•Solvency ratio of 162% (139% as at 30 Sep 23)
•Adjusted solvency margin is $117.1m, an increase from
$79.8m as at 30 Sep 2023
•Tower’s regulatory solvency position is now calculated under
the new Interim Solvency Standard (ISS) effective 1 Oct 2023
•The RBNZ is consulting on a proposed second amendment
to the ISS, which is not expected to be issued and effective
until Tower’s 2025 financial year
•The proposed changes to the ISS are likely have a material
impact on Tower’s regulatory solvency position, and will
reduce the solvency margin
•A- credit rating reaffirmed in April 2024 by AM Best
•3 cents per share interim dividend declared

Looking forward
Blair Turnbull,
Chief Executive Officer

Second half priorities
•Continue to invest in customer experience and initiatives
tosupport affordability
•Expanding risk-based pricing to include landslips and sea
surge
•Multi-policy discountremediation and FMA proceedings,
and other customer remediations
•Continue to drive efficiency, digitisation, and process
improvements
•Invest in products and initiatives that foster future climate
change resilience and sustainability
22

23
FY24 guidance and future targets
FY23
Actual
FY24
Guidance
FY25
Target
FY26
Target
GWP growth
(excluding operations sold)
17%10% - 15%10% - 15%10% - 15%
Large events allowance$56m$43m$50m$55m
Management expense ratio32%30% - 32%< 28%< 26%
Combined operating ratio100%< 93%< 91%< 87%
Underlying NPAT
(assuming full utilisation of large events allowance)
$7.1m>$35m$40m - $60m$60m - $80m
Return on equity12% - 15%> 15%
1
Note 1: Return on equity is defined as reported net profit after tax divided by average closing book equity
•Combined operating ratio updated to be less than 93%, down from previous guidance of between 95% and 97%
•FY24 assumes full utilisation of $45m large event allowance. Any unused portion of the large events allowance at
year end will increase underlying NPAT, and improve the full year result
•The benefit to underlying NPAT from no large events in FY24 would be an additional $32m ($45m less tax)
•HY24 release of $1.9m for prior year event reduces FY24 large events expense guidance from $45m to $43m

Questions?

Appendices

26
Historical large events
T O W E R L A R G E E V E N T S
$255m
•5 year average of 3.8 events per annum and 10 year average of 3.6 events per annum
•No large events incurred in HY24; $45m large event allowance still conservatively included within FY24 guidance
1
Note 1: Large events are defined as having a cost to Tower of $2m or more, with lodged claims from two or more policyholders. The gross cost is before reinsurance and third party recoveries
Allowance

27
Canterbury earthquake claims reducing
O P E N C E Q C L A I M S
•Half year charge of $0.8m after tax as a non-underlying item
•21 properties open as at 31 March 2024
•Remaining gross outstanding claims provision is $21.4m down from $23.4m at 30 September 2023
•Due to the low level of open properties and outstanding provision, this will be the last period CEQ is reported in detail
Note 1: On implementation of IFRS 17 the provision for Canterbury earthquake claims was increased from $20.7m to $23.4m retrospectively as a result of increasing the probability of adequacy to
90% (up from 75%).
1

28
Reconciliation between underlying profit after tax and reported profit after tax
Underlying and reported profit/(loss):
•“Net insurance revenue”, “net insurance service
expense” and “underlying profit” do not have a
standardised meaning under Generally Accepted
Accounting Practice (GAAP). Consequently, they
may not be comparable to similar measures
presented by other reporting entities and are not
subject to audit or independent review.
•Tower uses underlying profit as an internal reporting
measure as management believes it provides a
better measure of Tower’s underlying performance
than reported profit/(loss) , as it excludes large or
non-recurring items that may obscure trends in
Tower’s underlying performance, and is useful to
investors as it makes it easier to compare Tower’s
financial performance between periods.
•Tower has applied a consistent approach to
measuring which items are excluded from
underlying profit in the current and comparative
periods.
•“Reported profit/(loss) after tax” is calculated and
presented in accordance with GAAP
(1)Non-underlying items include net impact of Canterbury earthquake valuation update, regulatory and compliance projects (such as the adoption of IFRS-17), and gain on sale of operations
(2)Reclassification of claims handling expenses from management expenses to claims expense; and FX gains/losses from other income to management expenses
(3)Operations sold during HY24 and held for sale at 31 March 2024 are treated as discontinued operations for statutory purposes
(4)Reclassification of reinsurance expenses to present as net income from reinsurance contracts held for statutory purposes
(5)Reclassification of reinsurance and other recoveries to present as net income from reinsurance contracts held for statutory purposes

29
Disclaimer
This presentation has been prepared by Tower Limited to provide shareholders with information on Tower’s business. This document is part of, and should be read in
conjunction with an oral briefing to be given by Tower. A copy of this webcast of the briefing is available at http://www.tower.co.nz/investor-centre/ It contains
summary information about Tower as at 31 March 2024 which is general in nature, and does not purport to contain all information a prospective investor should
consider when evaluating an investment. It is not an offer or invitation to buy Tower shares. Investors must rely on their own enquiries and seek appropriate
professional advice in relation to the information and statements in relation to the proposed prospects, business and operations of Tower. The data contained in this
document is for illustrative purposes only. Past performance is not a guarantee of future performance and must not be relied on as such. The information in this
presentation does not constitute financial advice.
Forward looking statements
This document contains certain forward-looking statements. Such statements
relate to events and depend on circumstances that will occur in the future and
are subject to risks, uncertainties and assumptions. There are a number of
factors which could cause actual results and developments to differ materially
from those expressed or implied by such forward-looking statements, including,
among others: the enactment of legislation or regulation that may impose costs
or restrict activities; the re-negotiation of contracts; fluctuations in demand and
pricing in the industry; fluctuations in exchange controls; changes in government
policy and taxation; industrial disputes; and war and terrorism. These forward-
looking statements speak only as at the date of this document.
Disclaimer
Neither Tower nor any of its advisers or any of their respective affiliates,
related bodies corporate, directors, officers, partners, employees and agents
(other persons) makes any representation or warranty as to the currency,
accuracy, reliability or completeness of information in this presentation. To
the maximum extent permitted by law, Tower and the other persons
expressly disclaim any liability incurred as a result of the information in this
presentation being inaccurate or incomplete in any way. The statements
made in this presentation are made only as at the date of this presentation.
The accuracy of the information in this presentation remains subject to
change without notice.

---

1

Tower HY24 Results Announcement Investor Presentation Script
Slide 1 – 2024 Half Year Results
Michael Stiassny
Mōrena, good morning and thank you for making the time to join us for this
investor call and presentation of our 2024 half year results.
Slide 2 - Agenda
With me in Auckland is our Chief Executive Officer, Blair Turnbull and our Chief
Financial Officer, Paul Johnston who will take you through the results and
answer your questions.
Slide 3 – Chairman’s update
After the tumultuous weather events of 2023, it is a welcome shift to be
delivering good news today. Remaining focused on implementing strategy and
solid operational delivery – coupled with benign weather patterns – has
resulted in considerably improved business performance.
In addition, enhanced profitability and the comparatively swift resolution of
catastrophe event claims has significantly improved Tower’s capital position.
Consequently, I am pleased to announce that based on Tower’s ordinary
dividend policy of paying 60-80% of cash earnings where it is prudent to do so,
the Board has declared an interim dividend of 3 cents per share, to be paid on
the 27th of June.
[pause]

2

As you will recall, at the end of FY23 following the significant weather events in
February 2023, Tower set a prudent large events allowance of $45m which
remains intact.
Should the weather gods continue to look favourably upon us between now
and 30 September, any unused portion of that $45m, which is $32m after tax,
will directly increase underlying NPAT to improve the full year result.
Our year end underlying NPAT guidance of greater than $35m assumes full use
of the $45m allowance, so the potential upside could be significant.
[pause]
The strategic review Tower announced late last year is continuing to progress,
with a range of options being considered to maximise shareholder value and
optimise our capital structure to support our market competitiveness. No
decisions have been made and we will update the market at the appropriate
time.
Suffice to say that the Tower executive remains fully focused on strategy and
business delivery.
[pause]
While we are all enjoying calmer weather this year, insurers paid out some $4b
to New Zealand customers following last year’s catastrophic events. This
underscores the critical role insurance continues to play in New Zealand’s
resilience, both economic and societal.
Ensuring insurance remains available and cost-effective will necessarily be our
focus going forward. That will require Tower to develop new and innovative

3

offerings that not only identify and manage risk, and support customers and
communities through climate change, but are affordable.
As I have said previously, this is a particularly difficult sum to balance and
regrettably, Tower and other insurers will not be able to continue to provide
insurance for everyone.
[pause]
Tower has led the way in New Zealand with our early adoption of risk-based
pricing and underwriting. Our view was – and remains – that risk-based pricing
is in the best interests of policy-holders, shareholders and New Zealand Inc.
There is no question that risk-based pricing gives Tower a competitive
advantage by enabling more accurate risk selection and pricing, but
importantly it also clearly signals to the market where to buy and invest. And
these signals are absolutely crucial if New Zealand is to successfully manage
and avoid some of the financial risks posed by climate change.
Despite this – what I would call common sense – for the longest time it felt like
we were a lone voice and there were plenty of detractors.
Happily, for the future of this country, it appears the tide is turning.
To quote recent comments from the Reserve Bank of New Zealand (RBNZ):
“Risk-based pricing can provide a strong signal to encourage the proactive
mitigation and lowering of exposure to risks, which can be beneficial for
society's overall risk management”.
The RBNZ then went further in its most recent Financial Stability Report, calling
on other insurers and – more notably – the banks to, “take action to improve

4

their understanding of natural hazards to proactively manage affordability
challenges”.
We couldn’t agree more. The banks have been missing in action... Seemingly
reluctant to actively embed climate-related risks in their business operations
and risk management frameworks, but nevertheless content to continue
making record profits.
I look forward to seeing how the banks choose to respond to RBNZ’s challenge
because insurers can’t – and shouldn’t – be shouldering the burden alone.
[pause]
In closing, risk-based pricing will continue to underpin Tower’s competitive
position and underwriting capability. And, together with improvements in
digital and operational efficiencies and better expense control, will ensure that
Tower remains well positioned to both support customers and deliver
shareholder value.
[pause]
I’ll now hand over to Blair and Paul, who will take you through the results and
outlook before we take questions.
Blair Turnbull
Slide 4 – Business update
Kia ora, thank you Michael and good morning, everyone.
Thank you for joining us for our 2024 half year financial results.

5

Slide 5 - Results summary
Here is a summary of our results, which overall demonstrate Tower’s positive
operational and business performance.
On the tail of last year's events, we've never been clearer about our strategy of
being a leading direct player in our New Zealand and Pacific markets and
leveraging digital technology and data to drive efficiencies and excellent
customer experiences and outcomes.
I will talk through these points in more detail shortly, but first, an overview of
our performance this year.
Slide 6 – Our performance - positive operational and business performance
Gross written premium for the half year to 31 March increased to $291 million,
up 20% on the same period last year, excluding divested portfolios. This was
predominantly driven by prior period rating increases designed to mitigate the
impacts of inflation, crime and increased reinsurance costs following the 2023
catastrophe events.
Customer numbers decreased to 309,000, down from 312,000 in HY23 partly
due to our tightened risk appetite for high-theft motor vehicle models. Tower
reduced high-risk motor policies by 3,500 policies in the half.
Enhanced processes, a reduction in motor theft claims and calmer weather
have led to a decrease in the BAU claims ratio to 49.7% compared to 51.1% in
HY23.
We are pleased to see our management expense ratio improve again to 31.3%
versus 35% in HY23, thanks to our GWP growth combined with disciplined cost

6

control and improved efficiencies from investments in digitisation and
streamlining the business.
Large events costs for the half were negative $1.9m, due to a favourable
revision to the most recent estimate for Vanuatu cyclone claims incurred in the
prior year. There have been no large events in the half, compared to $37.3m of
large event costs in HY23.
Reflecting our positive operational and business performance we are reporting
an underlying profit after tax of $36.6 million, up from an underlying loss of
$3.7m in HY23.
Reported HY24 profit is $36.0m compared to a loss of $5.1m at the HY23.
On the basis of these results Tower will pay an interim dividend of 3 cents per
share.
Slide 7 – Continued premium growth
The prior period rating increases that were designed to mitigate the impacts of
inflation, crime and increased reinsurance costs following the 2023
catastrophe events have taken effect and were the predominant driver of the
20% GWP growth in the half.
We continually review premiums to ensure we provide good value and
competitive prices for our customers, while ensuring that the premiums we
collect cover the costs of the claims we pay out.
This year Canstar announced Tower as the winner of its Home and Contents
Insurer of the Year Award. The independent research panel noted the
outstanding value offered by Tower’s insurance products, especially its

7

Standard and Plus policy options, which feature comprehensive insurance
cover at affordable prices.
Our dynamic rating ability enables us to respond quickly to market conditions.
Inflation and reinsurance markets are currently looking to be more favourable
in the second half of the year, and providing this eventuates, we will review
premiums accordingly. Noting, of course, that our approach to risk-based
pricing means that pricing for individual customers will always reflect their
individual risks.
We are particularly pleased to see our proportion of house policies start to
increase as we focus more on the home insurance market. We know that our
home insurance customers hold more policies and stay longer than motor
customers.
Reflecting this is the fact that 55% of policy cancellations in the half were
customers who held just one motor policy with Tower. We offer more
favourable pricing to lower risk vehicles and apply higher premiums to those
that our data shows will potentially incur higher claims costs.
Our retention rate for our New Zealand risk portfolio remains stable at 77%.
Half of our customers hold multiple policies with us and these customers stay
with us for an average of eight years.
Slide 8 – Business unit distribution
Our strategy is underpinned by our three distribution channels - Tower Direct,
Partnerships and our Pacific operation.
Tower Direct

8

Over the half year, we've continued to build rewarding and engaging
relationships with customers.
Our flagship Tower Direct business now comprises 75% of our total GWP, up
from 58% three years ago, in line with our strategy to focus on direct to
consumer business.
A key contributor to this was a 14% increase in new home policies sold
compared to HY23.
Partnerships
Our partnership channel continues to provide positive growth opportunities. In
line with our strategy, our group referral model customer journey looks and
feels like our Tower Direct experience and is focussed on one-off referral
commissions at the point of policy sale.
This increases the benefit to Tower from customers who stay with us after the
first year of business, compared to traditional, annual commission models.
In the half year, partnerships in force risks increased 6% to 106,000, driven in
part by the 36% increase to 3,000 active advisors now referring customers to
Tower over the year.
Pacific
This year marks 150 years in operation in the Pacific and we are continuing to
digitise and simplify our offering in the region, aligning our New Zealand and
Pacific activities more closely to deliver growth and efficiencies.

9

With this simplification in mind, we completed the sale of our Solomon Islands
business in HY24, following on from the sale of our Papua New Guinea
subsidiary in FY23. We expect the sale of our Vanuatu subsidiary to complete
in the second half of FY24, pending regulatory approval.
Tower’s first parametric product is now live in Fiji, Tonga and Samoa, following
a successful trial launched in Fiji in FY22.
Slide 9 – Customer experience improves
Our digital platform is improving the overall Tower experience for our
customers as they increasingly adopt our online sales and service channels.
In HY24 the proportion of New Zealand service and claims tasks completed
online over the last 12 months increased to 57% and active My Tower users
increased 10% to 156,000.
This uptake comes as we have released new features in My Tower such as our
Ways to Save advice and the ability to change payment frequency online. We
also completed the rollout of My Tower across our Pacific operations in FY23.
Customer satisfaction for New Zealand online sales engagements is positive -
our combined New Zealand net promoter score for online experiences remains
steady at 52%. Our overall NPS score has improved to 31%, up from 28% in
September 2023.
With our core platform now live across the Tower group and our Suva Hub
officially opened in February 2024, we are able to flex resource across Fiji and
New Zealand, our two biggest markets.

10

The benefits of our 300-strong Suva Hub team continue to be realised,
contributing to a decrease in our sales and service abandonment rate, now at
12% versus 20% in HY23.
An important part of delivering a positive customer experience is fixing things
when we don’t get them right. As we’ve shared previously, Tower is focused on
putting things right for customers who have received incorrect discounts or
benefits.
The most significant part of our remediation programme has been refunding
customers who have not received correct multi policy discounts. We have
made substantial progress towards remediating these customers and as of 30
April 2024, we had paid over $8.6m excluding GST to these customers.
Slide 10 – Continued improvement in MER
We are pleased to have achieved yet another reduction in MER to 31.3%,
down from 35% in HY23.
Contributing to this MER improvement are Tower’s GWP growth, combined
with disciplined cost control, which has seen expenses rise at a lower rate than
inflation, as well as business efficiencies from investments in digitisation and
streamlining the business.
The expansion of our Suva hub has also delivered operational efficiencies. In
the half year our Suva team answered 50% of all New Zealand sales and service
calls to Tower, up from 16% in FY23.
Pleasingly, these improvements have also seen our management expenses
increase at below the rate of inflation.

11

Our commission ratio continues to improve, reducing to 1.6% in the half from
2.5% in HY23 thanks to legacy portfolio purchases and referral arrangements
that have reduced total commission.
Slide 11 – BAU claims ratio back within target range
Throughout FY23, BAU claims costs were challenged by large events, the
frequency of motor claims, rapidly increasing inflationary pressures and supply
chain capacity constraints, which impacted the severity, or cost of claims.
In the half year 2024 a number of key drivers have improved our BAU claims
ratio from a peak of 59% in the second half of 2023 back to within our target
range at 49.7%.
First, underwriting changes combined with targeted premium increases across
motor and home have been effective in reducing claims from higher risk
assets. General rating increases implemented to offset inflation and increased
reinsurance costs are also now earning through.
Following record claims volumes due to the FY23 catastrophe events, Tower
improved processes and implemented new technology to deliver faster and
more efficient claims management. This has resulted in 50% of motor claims
now being automatically allocated to our repair network via our digital
journey, compared to 10% in the second half of FY23.
We have also reduced our reliance on third-party assessors and now more
than 80% of house and motor claims are either assessed internally or sent
straight through to builders and repairers. This has reduced both assessing
costs and complexity.

12

External factors have also played a part with calmer weather in the half
reducing both the frequency of house claims in New Zealand and across all
claims from the Pacific region. The frequency of motor vehicle thefts has also
reduced in the half.
Consequently, BAU open claims are now tracking closer to historical averages.
As at 27 May 2024 Tower had closed 97% of FY23 catastrophe event claims.
Slide 12 – Business performance continues to improve
Underlying NPAT excluding large events for HY24 was $35m.
As you can see from this chart, we are steadily improving our underlying
business performance.
The fundamentals of our business are performing well, and investment income
is also benefiting from higher interest rates.
Slide 13 - Financial performance title slide – Paul Johnston
I will now hand you over to our chief financial officer Paul Johnston who will
take you through the details of our financial performance this year.
Slide 14 – Group underlying financial performance
Thank you, Blair.
Looking at the consolidated results, we can see that growth in GWP has been
strong, increasing by $46m, or 20% - excluding divested portfolios - compared
to HY23. This growth was driven by an appropriate mix of rating and
underwriting actions, alongside modest volume growth in the house portfolio.

13

Motor theft and claims volumes continue to reduce following decisive
underwriting actions.
Organisational efficiencies through the likes of our Suva Hub and digital
journey improvements have helped reduce our BAU loss ratio to 49.7%.
No large weather events have been experienced in the half year.
Pleasingly, the MER improved to 31.3% as a result of expense efficiencies and
scale.
Higher yields have seen net investment income increase by $3.7m to $10m.
Underlying NPAT including large events is $36.6m up from a $3.7m loss in
HY23, reflecting Tower’s financial resilience following catastrophic weather
events experienced in FY23.
Towers’ HY24 reported profit after tax is $36.0m.
Slide 15 – Movement in underlying NPAT
Here is the bridge between underlying NPAT in HY23 of minus $3.7m and
underlying NPAT of $36.6m in HY24.
You can see that calmer weather with no large event costs, coupled with
business growth, the BAU loss ratio falling back into target range, improved
MER and investment income have helped support this result.
Reported profit was impacted by an increase to the CEQ valuation, and an
increased customer remediation provision, as well as other non-underlying
costs partially offset by the gain on sale of Solomon Islands business.

14

Due to the low level of open properties and outstanding provision, this will be
the last period in which Canterbury Earthquake claims are reported in detail.
You can find a slide with the HY24 detail in the appendix of this presentation.
Slide 16 – BAU claims ratio reduced
Over the past two and half years the insurance industry has been impacted by
rapidly increasing inflationary pressures, the increasing frequency of motor
claims and motor theft, as well as supply chain capacity constraints which have
impacted the severity, or cost of claims.
Throughout FY23, these continued to track above historical norms in New
Zealand, following a more subdued period due to Covid lockdowns in previous
periods. Coupled with weather events, these factors led to our BAU loss ratio
increasing.
Throughout FY23 and HY24, Tower applied targeted premium increases across
motor and home to offset inflation, higher reinsurance costs and other
increases. We also continue to work closely with supply chain partners while
focusing on internal efficiencies and streamlining our business to moderate the
impact on customers as much as possible.
These actions, combined with motor theft frequency beginning to reduce from
its FY23 peak and calmer weather, which have lessened the frequency and
severity of house claims have led to a reduction in our BAU claims ratio.
Our BAU claims ratio is now within the target range at 49.7%.
Slide 17 – Continued improvement in management expense ratio

15

We are pleased to see our management expense ratio continue to reduce with
an improvement over the half year of 3.7% to 31.3%.
The effects of inflation were partially offset by cost efficiencies in the year.
Increased scale from business growth also enabled efficiencies and a 4.7%
reduction in MER with a further 0.5% decrease in net commission expenses
due to the legacy portfolio purchases.
Staff and other costs accounted for a 0.9% increase and a 0.6% increase in
amortisation was due to legacy portfolio purchases and continued spend on
investments to drive growth and efficiency automations.
Slide 18 – Higher investment returns as yields have increased
In HY24 net investment income increased to $10m before tax, this was $3.7m
higher than the same period last year.
This increased income reflects interest rates stabilising, resulting in higher
running yields.
Tower maintains a conservative investment policy with a focus on high credit
quality and liquidity bonds, and a target duration for the core investment
portfolio of six months.
Our strategy has mitigated the impact on our profit from macroeconomic
factors and mark to market movements in the past. Throughout FY23 and
HY24 this has allowed us to benefit from higher interest rates, as evidenced by
the running yield on the core investment portfolio remaining stable at 5.67%,
as at 31 March 2024.

16

The outlook for investment income is to remain stable across the second half
of FY24.
Slide 19 – Reinsurance programme supports resilience
Tower’s reinsurance strategy provides protection from volatility caused by
large events and maintains financial flexibility to support growth, while
underpinning strong solvency.
Our reinsurance arrangements for FY24 include catastrophe reinsurance of up
to $750m for two events with an excess of $16.9m for each event. This was
down from $889m in FY23 due to the EQC cap change which reduced the
amount of coverage needed.
We also purchased coverage for a third event of up to $75m with a $20m
excess.
Our FY24 retention limits and programme premium increases were mitigated
by our three-year rolling contracts. Tower’s FY24 large event allowance is
$45m, we have not recorded any large events in the half. Full utilisation of the
large events allowance is assumed in our guidance for the year.
Slide 20 - Capital and solvency position
Increased profits and the progress we have made in settling catastrophe event
claims and collecting the recoveries from reinsurers in the half have further
improved our solvency position compared to 139% at the 2023 full year. With a
solvency ratio of 162%, we are now holding $117.1m above the minimum
capital required for solvency, which accounts for the dividend payment. This is
an increase from $79.8m as at 30 September 2023.

17

Tower’s regulatory solvency position is calculated under the new Reserve Bank
of New Zealand (RBNZ) Interim Solvency Standard (ISS), which applies from the
current financial year.
On 15 May 2024 Tower uploaded a presentation to the NZX and ASX detailing
the impacts of these new regimes. While the presentation and disclosure of
information in Tower’s financial statements from the half year 2024 will
change, the standards will not affect Tower’s strategy, profitability and
dividend policy.
We note that the RBNZ is proposing a second amendment to the ISS, which is
not expected to be issued and effective until Tower’s 2025 financial year.
The proposed changes to the ISS are likely to have a material impact on
Tower’s regulatory solvency position and will reduce the solvency margin.
We were pleased that Tower’s A- credit rating was reaffirmed in April 2024 by
AM Best.
The Board has declared an interim dividend of 3 cents per share.
Slide 21 – Looking forward
Thank you. I will now hand back to Blair who will provide an update on our
guidance and priorities for FY24.
Blair Turnbull
Thank you, Paul.
Slide 22 – Second half priorities

18

In line with our strategy our priorities for the remainder of the year are clear.
We will continue to invest in creating leading customer experiences and
initiatives to support affordability, while targeting the right risks at the right
price.
This includes adding landslide and sea surge risk ratings to our automated
customer-facing quote-to-buy tool, where customers can already see their
home’s risk ratings for earthquake and flood hazards.
In the second half we will continue to focus on offering competitive pricing.
Should inflation and the reinsurance market soften near the end of the year as
we are currently expecting, then we’ll see lower levels of premium increases
coming through.
In the coming year, we anticipate the proportion of new business from home
insurance policy sales to grow as we target high quality risks.
And we will continue to grow organically through our existing partnerships.
An important priority is addressing the multi-policy discount remediation and
other customer remediations while also ensuring we address the root causes
of errors that have led to these remediations.
In the second half, we will continue to focus on delivering efficiency,
digitisation and process improvements.
We will launch new house and motor assessing systems to reduce assessment
times and repair costs. And we will continue to leverage our Suva hub to
increase efficiency and customer benefits. Our claims transformation project is

19

already delivering benefits and we expect this to further accelerate in the
coming 12 months as key assessment and workflow initiatives are delivered.
We will also continue to invest in products and initiatives that foster future
climate change resilience and sustainability.
Slide 23 – FY24 guidance and future targets
In FY24 Tower expects GWP growth - excluding revenue from sales of
subsidiary operations - of between 10% and 15%.
We have set a conservative large events allowance of $45m for FY24 versus
$56m in the prior year. The half year release of $1.9m due to a favourable
revision to the most recent estimate for Vanuatu cyclone claims in FY23 has
reduced the FY24 large events guidance expense to $43m.
Consistent with FY23, we measure large events as those which have a total
cost of more than $2m.
We expect further improvements to our management expense ratio which we
anticipate will be between 30% and 32%. We are on track to meet this target
with a current MER of 31.3%.
As the rating and other actions that we have in place to address inflation
continue to improve our BAU loss ratio, we expect our combined operating
ratio to reduce to less than 93%, down from previous guidance of between
95% and 97%.
Assuming full utilisation of the $45m large events allowance Tower anticipates
underlying NPAT to be greater than $35m.

20

However, any unused portion of the large events allowance at year end will
increase underlying NPAT and improve the full year result. If there are no large
events this would represent an additional $32m of underlying NPAT (or $45m
less tax).
Our FY25 medium-term targets will see our focus in the next financial year on
delivering another 10% to 15% GWP growth, a management expense ratio of
less than 28% and, a combined operating ratio of less than 91%. We are
targeting a return on equity of between 12% and 15%.
In FY26 we plan to deliver another 10% to 15% GWP growth, a management
expense ratio of less than 26% and, a combined operating ratio of less than
87%. We will be targeting a return on equity greater than 15%.
Thank you for your time this morning, I will now hand back to the operator to
ask for questions.

---

Distribution Notice


Classification: Sensitive


Section 1: Issuer information
Name of issuer Tower Limited
Financial product name/description Ordinary Shares
NZX ticker code TWR
ISIN (If unknown, check on NZX
website)
NZTWRE0011S2
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 13/06/2024
Ex-Date (one business day before the
Record Date)
12/06/2024
Payment date (and allotment date for
DRP)
27/06/2024
Total monies associated with the
distribution
1

$11,384,520

Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.03000000
Gross taxable amount
3
$0.03000000
Total cash distribution
4
$0.03000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.00000000
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

Classification: Sensitive
If fully or partially imputed, please
state imputation rate as % applied
6

N/A
Imputation tax credits per financial
product
N/A
Resident Withholding Tax per
financial product
$0.00990000
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)

Start date and end date for
determining market price for DRP

Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Blair Turnbull
Contact person for this
announcement
Emily Davies
Contact phone number +64 21 815 149
Contact email address emily.davies@tower.co.nz
Date of release through MAP

28/05/2024





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.