Tower Delivers Strong FY24 Result

28 November 2024
Tower Limited
FY24 Full Year 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) FY24 Full Year Results:

1 Media Release
2 Results Announcement
3 Annual Report (including Financial Statements)
4 Results Announcement Presentation
5 Results Announcement Call Script
6 NZX Distribution Notice
7 Climate Statement

Tower’s Chairman Michael Stiassny, Chief Executive Officer Blair Turnbull and Chief Financial
Officer Paul Johnston will discuss the full 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 the Tower Board.

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 November 2024

Tower Delivers Strong FY24 Result

Kiwi insurer, Tower Limited (NZX/ASX: TWR) today reported its result for the year to 30 September 2024,
recording an underlying net profit after tax (underlying NPAT) of $83.5m and a reported profit of $74.3m.

The strong results were due to Tower experiencing no large events in the financial year, year-on-year
improvements in business-as-usual (BAU) claims performance, premium growth, and operational and digital
efficiencies. This was a significant improvement compared to the $1m
1
reported loss in FY23, which was primarily
due to catastrophe events.

Summary of FY24:
• Underlying profit $83.5m vs $7.1m in FY23
• Reported profit $74.3m vs $1m loss in FY23
• Gross written premium (GWP) $595m, up 15% on FY23
• Business as usual (BAU) claims ratio 48.1% vs 55.1% in FY23
• Management expense ratio (MER) improved to 31.4% vs 32% in FY23
• Large event costs -$2.3m vs $55.6m in FY23, due to Tower experiencing no large events in the financial
year and a favourable revision to prior year large events costs
• Customer numbers were down 2% to 305,000 vs 311,000
2
in FY23 partly due to tightened risk appetite
for high-theft motor vehicle models

Reflecting the positive FY24 results and based on Tower's ordinary dividend policy, the Board has declared a final
dividend of 6.5 cents per share. This brings total dividends for FY24 to 9.5 cents per share.

The Board has also conditionally approved a return of NZ$45m of excess capital to shareholders, by way of
mandatory share buyback
3
. The return of capital is expected to deliver meaningful earnings per share accretion
to Tower’s shareholders.

Strong business performance
Tower CEO, Blair Turnbull says, “Continued improvements in claims performance, sustained GWP growth and
enhanced business efficiencies along with unusually benign weather in New Zealand and the Pacific, have
delivered a positive result for shareholders.

“This strong result is underpinned by our strategy of delivering simple and rewarding customer experiences
combined with our use of digital technology and data.”

The BAU claims ratio has reduced to 48.1% compared to 55.1% in FY23. This improvement was driven by a
combination of rating increases, enhanced processes, a reduction in motor theft claims due to targeted
underwriting actions and lower crime, and calmer weather, which flattened the frequency of house claims in the
year.


1
All prior year metrics have been restated to align with the new accounting standard, IFRS 17, for consistent comparisons.
2
Prior year customer numbers have been adjusted to exclude sold and held for sale portfolios which include the Solomon Islands
business and Vanuatu subsidiary, and the New Zealand commercial rural portfolio.
3
The return of capital will be conducted as a scheme of arrangement. It is subject to receipt of High Court approval of the arrangement
and shareholder approval, as well as Tower continuing to satisfy solvency and prudential capital requirements, and the Tower Board
remaining satisfied that it remains prudent to undertake the capital return, in each case up to the time the capital return is give effect.

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
As at 31 October 2024, Tower had closed 99% of both the Auckland Anniversary and Cyclone Gabrielle FY23
catastrophe event claims.

Premium growth continued in FY24 with GWP increasing 15% year on year to $595m. This was mainly due to
prior period rating increases aimed at mitigating the impacts of inflation, crime and higher reinsurance costs
following the 2023 catastrophe events.

Mr Turnbull says, “We recognise the impact of premium increases for customers. As inflation settled later in the
financial year we moved to moderate premium increases, particularly for low-risk assets. With inflation now
easing, we expect premium increases to stabilise further.”

GWP from house insurance policies grew by 18% in the year, reflecting a stronger focus on the home insurance
market.

Delivering operational efficiencies
Tower’s GWP growth, along with disciplined cost control has led to another improvement in MER, with it
reducing to 31.4% from 32% in FY23. Tower is continuing to further improve business efficiency through
investments in digitisation and streamlining operations.

Tower’s Suva hub, which was expanded in FY24, is now answering more than half (55%) of all New Zealand
customer sales and service calls.

No large events recorded in FY24
Tower’s conservative large events allowance of $45m for FY24 was unused as no large events were recorded in
the financial year. The unused allowance increased underlying NPAT by $32m ($45m less tax).

FY25 guidance
Tower's FY25 full year guidance is for underlying NPAT to be between $50m and $60m. This assumes full
utilisation of a large events allowance which has prudently been set at $50m, reflecting growth in the house
portfolio, and inflation-based increases to sums insured. GWP growth in FY25 is expected to be between 10% and
15% reflecting a balance of rating and organic growth. Digitisation and efficiency initiatives are expected to
improve MER to less than 29%.

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
+64 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
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Results for announcement to the market
Name of issuer Tower Limited
Reporting Period 12 months to September 2024
Previous Reporting Period 12 months to September 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$555,818 18%
Total Revenue $562,409 17%
Net profit/(loss) from
continuing operations
$70,884 2640%
Total net profit/(loss) $74,285 N/a – prior year was a loss
Interim/Final Dividend
Amount per Quoted Equity
Security
6.5 cents
Imputed amount per Quoted
Equity Security
Not Applicable.
Record Date 16 January 2025
Dividend Payment Date 30 January 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.73 $0.48
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; improvements in claims
performance; along with the absence of large events, which had
impacted the prior year’s profit.

Please refer to the 2024 full year 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 November 2024

---

Tower Limited
Annual Report 2024

Contents
2024 In review2
2024 snapshot
3
Update from the Chair and CEO
5
Delivering on our strategy
9
Our purpose, vision and strategy
10
Leading customer experience
11
Operationally efficient
22
Resilient
29
Effective & distinctive culture
34
Environmental, social and governance performance
41
Board of Directors
50
Consolidated financial statements
52
Financial statements
53
Notes to the consolidated financial statements
58
Independent auditor’s report
99
Appointed actuary’s report
103
Corporate governance at Tower
104
Global Reporting Initiative content index
115
Tower directory
121
Registry details
122
1ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainabilityOur strategy2024 in reviewANNUAL REPORT 2024Our strategy

2024
in review
2ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainabilityOur strategy2024 in review

1
Underlying Profit, GWP, MER, BAU claims ratio and COR are non-GAAP financial information. Consequently, they may not be comparable to similar measures presented by other reporting entities and are not subject to audit or independent review. GWP is a component of
Insurance Service Revenue. MER is the ratio of underlying management expenses, including claims handling expenses, to underlying Insurance Service Revenue. BAU Claims Ratio is the ratio of underlying claims expense, excluding large events, to underlying Insurance
Service Revenue. Underlying Profit includes large events but excludes certain large or non-recurring items. Tower uses Underlying Profit, and related measures, as internal reporting measures because management believes they provide a better measure of Tower’s
underlying performance than Reported Profit and are useful to investors as they make it easier to compare Tower’s underlying financial performance between periods. A reconciliation of these items to GAAP financial information can be found in the appendix of Tower’s
FY24 Results Announcement Presentation released on 28 November 2024 via the NZX and, for FY23 comparatives, in the appendix of the IFRS 17 transition update released on 15 May 2024 via the NZX.
2
Excluding divested portfolios.
3
HY24 dividend 3c, FY24 dividend 6.5c.
Reported profit after
taxation vs. $1m
loss in FY23
Underlying profit
vs. $7.1m in FY23
1

$
74.3
m
$
83.5
m
Management
expense ratio
(MER)
1
down from
32% in FY23
Gross written premium
(GWP)
1
, up 15%
2
from
$527m in FY23
1
31.4
%
$
595
m
Combined
operating ratio
1

(COR) vs 100.4%
in FY23
Business as usual
(BAU) claims ratio
1
vs
55% in FY23
79
%
48
%
Shareholders
Total FY24 dividends
per share declared
3

Capital return
declared
9.5
C
$
45
m
Performance
2024 snapshot
3ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainabilityOur strategy2024 in review

Customers
Community
1
As at 13 September 2024, based on Tower’s latest staff engagement survey.
Employee diversity and inclusion score in the top 10% of the global finance sector.
2
Prior year customer numbers have been adjusted to exclude sold and held for sale
portfolios which include the Solomon Islands business and Vanuatu subsidiary, and
the New Zealand commercial farm portfolio. FY24 customer numbers decreased
2% partly due to tightened risk appetite for high-theft motor vehicle models.
3
FY23 reported claims includes large events, there were no large events in FY24.
4
Two Tower Climate Change Scholarships awarded to University of Waikato
students (NZ) and three Tower Vunilagi Scholarships awarded to University of the
South Pacific students (Fiji).
Employee diversity and
inclusion score
1
vs. 8.6
in FY23
Employee engagement
score
1
vs. 7.8 in FY23
Volunteer hours in our
communities in FY24
vs. 390 in FY23
Tower scholarships
awarded to university
students
4
8.9
8.1
2,300
5
Customers vs.
311,000 in FY23
2
305,000
Reported claims across
NZ and the Pacific vs.
87,500 in FY23
3
67,500
People
4ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainabilityOur strategy2024 in review

Update from the Chair and CEO
Tower has a strong purpose, clear
strategy and is focused on fostering
a distinctive culture. We are pleased
to report on the progress we made
in FY24.
FY24 was a year of milestones for Tower: from
celebrating our 150-year anniversary in Fiji; to opening
our new Suva hub operational centre; ringing in 25 years
of being listed on NZX; and it was followed by entry into
the NZX 50 just after year end.
All the while we have remained focused on progressing
our strategy to be the leading direct personal lines
and SME insurer in New Zealand (NZ) and our chosen
Pacific markets.
We continue to strive towards delivering beautifully
simple and rewarding experiences that our people
and customers rave about. And our investments in
technology continue to improve Tower’s customer
experience and operational efficiency.
Strong business performance
For the year to 30 September 2024, underlying profit
was $83.5m, up from $7.1m in FY23. Reported profit was
$74.3m, compared to a $1m loss in FY23.
Premium growth, excluding divested portfolios,
continued in FY24 with gross written premium (GWP)
increasing 15% year on year to $595m. This was
predominantly driven by prior period rating increases
designed to mitigate the impacts of inflation, crime
and reinsurance cost hikes following the 2023
catastrophe events.
Tower’s GWP growth, combined with disciplined cost
control has seen management expense ratio (MER)
further improve, reducing from 32% in FY23 to 31.4%.
Targeted underwriting actions, stronger-than-expected
business performance, particularly in claims, and
unusually, no large events occurring in the financial year,
have been key drivers of this year’s results.
Tower’s FY24 market guidance assumed full utilisation
of a $45m large events allowance. However, as no large
events occurred, net profit after tax (NPAT) was $32m
higher than initially indicated, reflecting the tax-adjusted
$45m allowance that was not used.
We have a robust reinsurance programme to help
manage large events and adequately protect Tower’s
solvency and capital positions.
Tower’s NZ parent solvency margin improved from
$79.8m at 30 September 2023 to $171.4m at September
30 2024. As at 30 September 2024, Tower’s NZ parent
solvency ratio was 212%.
During the year Tower began reporting against NZ IFRS
17 Insurance Contracts (IFRS 17), a new accounting
standard applicable to all insurance companies. Tower’s
strategy, profitability and dividend policy are unaffected
by the new standards.
In accordance with Tower’s ordinary dividend policy to
pay 60-80% of adjusted earnings, where prudent to
do so, Tower’s Board has declared a final dividend of
6.5 cents per share, bringing total dividends to 9.5 cents
per share in FY24.
The Board also approved a return of NZ$45m of excess
capital to shareholders, by way of a mandatory share
buyback, subject to shareholder approval at Tower’s
annual shareholder meeting (ASM) in early 2025 and
fulfilment of other conditions. The return of capital is
expected to deliver meaningful earnings per share
accretion to Tower’s shareholders.
Leading customer experience
Central to Tower’s strategy is delivering a consistent,
easy-to-understand insurance experience for all
our customers.
This is facilitated by our core, cloud-based technology
platform and our ongoing investment in My Tower, our
sales and service platform. This enables us to provide
customers with a consistent, online insurance buying
and management experience while reducing our cost-
to-serve.
Our online journeys continue to resonate with customers,
boosting GWP growth, with 63% of this year's NZ sales
coming through our online channels.
5ANNUAL REPORT 2024Our strategySustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents2024 in review

Our partners enable us to reach more Kiwi and Pacific
customers. In FY24, Trade Me GWP increased by 16%,
comprising 37% of Partnerships’ GWP. Additionally, we
were proud to launch new partnerships with Kiwibank
and HealthCare Plus and expanded further in the
mortgage broker market.
We ended FY24 with a three-month average customer
net promoter score of +38, up from +28 in FY23. We
continue to invest in digitisation, data and process
excellence to further enhance our customer experience.
One example of this is ‘ways to save’. Throughout the
year, 29,000 customers used our ways to save feature in
My Tower, which offers useful tips and options to reduce
premiums. By providing these tools, we empower our
customers to manage their insurance more effectively
and reduce while also reducing the workload for our
customer care team.
We were particularly proud to be named Canstar's
Home & Contents Insurer of the Year for 2024. The award
acknowledged our customer service, commitment
to affordability and the overall value we deliver to
Kiwi households.
While we value this recognition, we are also committed
to fixing things when we don’t get them right. In FY24,
we made significant progress towards remediating
customers identified as being owed a premium refund
due to errors in applying our multipolicy discount. As
at 30 September 2024, we had identified refunds of
around $12m (including GST and interest) owed to
66,000 customers and had repaid over $11m. We are
also actively addressing premium overcharges resulting
from separate promotions and policy discounts and
other policy errors, ensuring all affected customers are
fairly compensated.
Fixing issues that have required customer remediations
is important to us. In FY24 we launched Foundations
First, a strategic programme focused on strengthening
our business fundamentals. Two of its key initiatives
involve improving data management across Tower and
investigating the root causes of incidents that lead to
remediations, enabling us to develop strategies to tackle
these underlying issues. Ultimately, Foundations First
aims to bolster business resilience, promote positive
customer outcomes and foster sustainable growth.
Tower also initiated a comprehensive programme to
align its conduct framework with the upcoming Conduct
of Financial Institutions (CoFI) regime, which comes into
force on 1 April 2025. This is a key priority for Tower and
supports our strategic commitment to delivering fair
outcomes for our customers.
Targeted growth through risk-based
pricing and disciplined underwriting
Tower’s adoption of risk-based pricing and underwriting
has given us a competitive advantage by enabling more
accurate risk selection and pricing. We believe it’s fairer
for customers to only pay for the risks that apply to their
property. We also believe in transparency, so we provide
customers with a detailed premium breakdown that
shows the impact of their risk ratings on their premiums
and offer comparison at renewal.
6ANNUAL REPORT 2024Our strategySustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents2024 in review

During the financial year we expanded our risk-based
pricing model by introducing automated underwriting
rules for landslide risks across NZ. This follows the
implementation of similar rules for sea surge risks
in FY23.
In the coming year, our customers will be able to see
their home’s risk ratings for landslide and sea surge
on their property – alongside those for earthquake
and flood hazard – and the impact those risks have on
their premiums.
We are particularly pleased to see new business house
policies increase by 18%, compared to FY23, as we focus
more on the home insurance market.
Enhanced claims management
Following record claims volumes in FY23 due to
catastrophe events, we improved processes and
implemented new technology to deliver faster and more
efficient claims management.
In FY24 we continued investing in our home and
motor claims journey, resulting in significantly reduced
claims processing times and improved end-to-end
claims management.
Since May 2024, two-thirds of customers who submitted
weather, accidental damage or escape of water claims
through My Tower had their claims automatically
accepted and or referred to an assessor or house
supplier, bypassing manual processing or review.
Delivering operational excellence
This year, we celebrated 150 years of operation in Fiji and
continued to streamline our wider Pacific operations.
As part of this effort, we completed the sale of our
Solomon Islands business and Vanuatu subsidiary
in FY24, following the divestment of our Papua New
Guinea subsidiary in FY23.
Additionally, we opened our new operational hub in
Suva, which now handles over half of our NZ customer
service calls, significantly improving call answer times.
With around 300 local employees in Fiji, this enhances
our ability to allocate resources flexibly across locations
and functions, bolstering business resilience.
Fostering a more sustainable future
Witnessing the impacts of climate change firsthand in
the communities we serve has driven us to implement
changes in our business operations, support customers
with innovative products, and fund scholarships to
deepen understanding of climate change.
In 2022, we launched Cyclone Response Cover, our first
parametric product designed for Pacific communities
and small businesses. After introducing this innovative
product in Samoa in FY24, it is now available in three
Pacific countries. In FY25 we plan to introduce a new
parametric rainfall product.
For the fourth consecutive year, we supported the
University of Waikato’s Bachelor of Climate Change
degree by providing scholarships for second and third-
year students.
As a Kiwi and Pacific insurer, we are acutely aware of the
climate risks faced by island nations and are particularly
pleased to award this year’s scholarships to students
focused on mitigating climate change impacts on Māori
and Pasifika communities.
Additionally, we piloted initiatives to reduce our Scope
three emissions. We are committed to reducing our
Scope 1, 2 and 3 emissions and have achieved a 20%
reduction in Scope 1 and 2 greenhouse gas emissions
compared to our FY20 baseline year.
More details can be found in our first Climate Statement,
released alongside this annual report. Our teams
also dedicated 2,300 hours to volunteering in our
communities, a pleasing and very worthwhile effort.
Investing in our people and culture
This year’s results are a testament to the entire Tower
team. We remain committed to supporting our people,
enabling us to attract, develop, and retain the best talent.
In FY24 we continued to enhance the Tower experience
for our people. We now have seven well-established
employee representation groups (ERGs), with one in
three staff actively participating.
A key metric we focus on are our employee engagement
scores. Our latest staff survey in September 2024
showed an employee engagement score of 8.1, up from
7.8 in September 2023.
Encouragingly, our focus on company culture has
resulted in a diversity and inclusion score of 8.9, placing
us in the top 10% of the finance sector globally.
7ANNUAL REPORT 2024Our strategySustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents2024 in review

Michael Stiassny
Chair
The year ahead
Insurance plays a vital role in supporting economic and
community resilience. This is increasingly important in
a world where the impacts of climate change are not a
matter of if, but when and how much?
We aim to maintain affordable premiums, and with
Tower’s risk-based pricing strategy, we anticipate that
premium increases will continue to level off in certain
areas, while some premiums reduce. Together with the
digitisation and operational performance efficiency gains
achieved this year, we are well-positioned for FY25.
In November, Tower shared with the market that Blair
will step down as CEO, following the 2025 annual
shareholder meeting in February.
On behalf of the board, I would like to thank Blair and
acknowledge his leadership which has driven significant
progress in Tower’s journey to become the leading direct
personal lines and SME insurer in New Zealand and our
chosen Pacific markets.
Tower is committed to continuing to serve our customers
and communities. With a strong business platform
and a robust strategy, we are well positioned to deliver
sustainable premium growth and attractive long-term
shareholder returns.
Blair Turnbull
CEO
"In my view, Tower is a really unique
business, and I am very proud to
have played a part in its long history.
"Together, we have significantly transformed Tower’s
customer experience by leveraging digitisation and
realised marked operational efficiencies through our
cloud-based platform. Our business is now sharply
focused and streamlined in our chosen markets, and
we continue to innovate with risk-based pricing and
new offerings like parametric insurance.
"I believe the platform is solid and as such it’s an
ideal juncture to pass the baton.
"A sincere thank you to our people for always
showing up for our customers over the past four
and half years, particularly the executive team, who
have truly lived up to our core values; we do what’s
right, our people come first, our customers are our
compass and progress boldly.
"Put simply, it has been a privilege and a pleasure."
- Blair Turnbull
ANNUAL REPORT 20248Our strategySustainabilityConsolidated financial statements2024 in reviewCorporate governanceGRI content index Contents

Delivering
on our
strategy
9ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainability2024 in reviewOur strategy

Our purpose
To inspire, shape and protect the future for
the good of our customers and communities.
Our vision
Ta tātou kaupapa
To deliver beautifully simple and rewarding
experiences that our people and our
customers rave about.
Our strategy
To be the best direct personal lines and
SME insurer in our selected markets differentiated
through digital and data, fair and transparent,
and with customer care in everything we do.
Our values
We do
what’s right
Our people
come first
Our customers
are our compass
Progress
boldly
Our strategic pillars
LEADING
CUSTOMER
EXPERIENCE
Succinct, easy
customer
experiences
across the
lifecycle
OPERATIONALLY
EFFICIENT
Digitise and
automate core
processes and
leverage
geographical
footprint
EFFECTIVE &
DISTINCTIVE
CULTURE
An inclusive,
diverse and risk
aware culture.
Empower our
people to
achieve
great things
RESILIENT
Manage volatility
and deliver
sustainable
outcomes for all
stakeholders
10ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainability2024 in reviewOur strategy

Leading
customer
experience
11ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

My Tower
Tower customers benefit from an
easy-to-understand insurance buying
and management process, that also
reduces our service costs.
Launched in 2019, our self-service digital platform,
My Tower, is an online sales and service portal.
Features include the ability to lodge a claim,
check claims progress, and automated referrals to
some suppliers.
In line with our focus on transparency, customers
can view their premium breakdown and a premium
comparison at renewal, as well as their property’s flood
and earthquake risk ratings.
Customers increasingly seek an online experience, but
also value the opportunity to call someone if they need
help or support. In FY24, our average call wait time was
2 minutes and 10 seconds, contributing to a drop in our
sales and service abandonment rate to 8% compared
to 13% in FY23.
Customer NPS for
My Tower, up from
+28 in FY23
+
35
Tower’s Fiji digital
retail branch.
FY24 marked the first full financial year during which
My Tower and our online quote-to-buy journey were
available across all Tower’s Pacific markets.
This is a positive step forward in increasing insurance
accessibility, penetration and awareness in the Pacific.
In the coming year we’ll continue to grow our presence
in-region.
1
Adjusted to exclude divested portfolios which includes the New Zealand
commercial rural portfolio.
NZ My Tower users,
up 5% in FY24
164,000
Tower direct GWP,
up 16%
1
from FY23
$
446
m
12ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Ways to save
To help our customers manage
their insurance and affordability,
we introduced ways to save.
Ways to save is a My Tower feature for our New
Zealand customers that offers useful tips and options
to reduce premiums. For example, customers can
explore how their premiums would change by
increasing or decreasing their excess.
Like our wider My Tower offering, ways to save
empowers customers to manage their insurance,
without the need to call our contact centre team,
helping to create a more efficient experience for our
customers and teams.
In FY24, 16% of customers who interacted with ways
to save made changes to their cover that resulted in
lower premiums.
Customers accessed
ways to save on average
per month in FY24
2,400
Decrease in annual
premium per customer
via ways to save in FY24
1
$
122
1
Average amount saved by customers who decreased their
premiums via ways to save.
13ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Products to suit our customers and communities
House
Contents
Motor
CaravanLandlord
Boat
Pet
Travel
Business
MotorbikeMotorhome
Parametric cover
(for Cyclone and Rainfall)
• Canstar Outstanding Value Trans-Tasman
Travel Insurance – 2023
• Canstar Outstanding Value South Pacific Cruise
Travel Insurance – 2023
14ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainability2024 in reviewOur strategy

Market-leading risk-based pricing
In FY24, we expanded our risk-based pricing model by
introducing automated underwriting rules for landslide
risks across NZ. This followed the implementation of
automated underwriting rules for sea surge risks across
NZ in FY23.
Through our award-winning and market-leading
approach to risk-based pricing, customers can already
see their home’s risk ratings for floods and earthquakes
1
.
We believe risk-based pricing is a fairer way to price
insurance as customers only pay for the risks that apply
to their properties.
In the coming year, we will include pricing and
customer-facing landslide and sea surge risk ratings for
our customers’ homes.
1
Risk ratings may not be immediately available for customers if the address
is not in our address database (for example, the property is a new build).
2
Independent research conducted by the Octopus Group in April 2023, with
a sample size of 1,000 representative of NZ’s population.
Kiwi think risk-based
pricing is a fair way to
price insurance
2
87
%
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Tower’s work to increase insurance
awareness, accessibility and uptake
in the Pacific through parametric
insurance, continued in FY24.
Parametric insurance offers a lower-cost alternative that
provides a level of cover for Pacific communities that
may not benefit from traditional insurance.
2023
Nov - Announced partnership with global Insurtech
CelsiusPro to upgrade our Cyclone Response Cover
IT platform.
Oct - In partnership with the the United Nations Capital
Development Fund (UNCDF), Tower featured on the
world stage via a panel talking about parametric
insurance in Ghana, at the International Conference for
Inclusive Insurance 2023.
Dec - Launched parametric Cyclone Response Cover in
Samoa in collaboration with the United Nations Capital
Development Fund (UNCDF), under its flagship Pacific
Insurance and Climate Adaptation Programme.
2024
Jul - Tower Parametric Product Manager Felichya Khan
represented Tower as part of a UNCDF delegation that
attended the 20th Asia NAT CAT and Climate Change
Summit 2024, in the Philippines.
Aug - Reserve Bank of Fiji announced a collaboration
with the InsuResilience Solutions Fund, and the local
insurance sector, including Tower, to have 5,000 new
parametric policies in place across Fiji by the end
of 2025.
Sep - Launched new parametric platform for customers
in Fiji and Tonga, with CelsiusPro, aiming to make it
simpler for Tower customers to access and manage their
parametric cover.
Oct - Tower Tonga Country Manager Manase Tafea,
presented on parametric insurance at the 53rd Pacific
Islands Forum Leaders Meeting, in Tonga.
Looking ahead
In the coming financial year, we plan to launch Cyclone
Response Cover in the Cook Islands and add a new
parametric rainfall product to our suite, for our Fiji market.
Tower is also looking into opportunities to launch a
parametric insurance product in NZ.
We look forward to continuing to partner with our
communities in the other Pacific territories we operate in,
all with the goal of increasing the uptake of insurance in
the Pacific.
Increasing insurance accessibility
with parametric insurance
Promoting parametric at the Commonwealth
Heads of Government Meeting 2024 (CHOGM),
Business Forum
As an opportunity to expand the reach of our parametric
offering, in October 2024, Tower was proud to partner
with the Commonwealth Enterprise and Investment
Committee, to attend CHOGM 2024 in Apia, Samoa.
Tower CEO Blair Turnbull featured on a tech and
innovation panel, Tower Chief Underwriting Officer
Ronald Mudaliar and Head of Pacific Retail Distribution
Joanne Rasmussen, took part in roundtable discussions
on unlocking green investment and risk mitigation, and
leadership in island nations.
Tower delegation at CHOGM 2024.
16ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Our product range is designed
for the lifestyles of Kiwi and
Pacific customers.
In recent years, we’ve added new products such
as parametric, pet, travel, boat and contract works -
renovation cover to our product suite.
At the same time, we’ve continued to phase out
products that are not compatible with our digital
customer experience.
That’s why, from February 2024 we stopped offering
insurance for commercial farms. However, we
continue to offer cover for lifestyle blocks under
our strategy.
In FY24, our customer net promoter score (NPS)
increased. The majority of NZ direct sales continue
to come through our online channels.
1
Three-month average as at 30 September 2024.
Award winning
Tower experience
Members of Tower's product and marketing teams and Canstar
representatives, with some of FY24's Canstar awards.
NZ sales online
vs. 70% in FY23
63
%
Customer NPS
1
, up
from +28 in FY23
+
38
Increase in new
business house
policies in FY24
18
%
17ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Our corporate, retail and advisory
referral partnerships help us to scale
efficiently, and deliver products
in better ways for Kiwi and Pacific
customers.
Our advisor referral model accounted for 42% of
partnerships' GWP in FY24, with a 19% increase in risks
sold through our advisor network.
TradeMe GWP grew 16% in FY24, accounting for 37%
of partnerships’ GWP.
Proud to partner
Building on the success of our partnership model,
in FY24, we welcomed new partners Kiwibank and
HealthCarePlus.
Tower also has referral agreements in place with New
Zealand Financial Services Group, Kiwi Adviser Network,
New Zealand Home Loans, Ray White Concierge, the
New Zealand Defence Force and TSB.
These and other relationships have contributed to 24%
increase in GWP from partnerships against FY23.
This year, we’re proud to mark three years of supporting
Coastguard New Zealand to help bring Kiwi home safe.
Growth in advisor
network to 3,300
vs. FY23
32
%
Partnerships' GWP,
up 24% from FY23
$
102
m
Increase in new
risks sold through
our advisor
network vs. FY23
19
%
18ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainability2024 in reviewOur strategy

Kiwibank
We welcomed our first Kiwibank customers to Tower in
early September. This partnership presents a strategic
opportunity for Tower, aligning with our focus on growing
our home insurance portfolio.
Our initial five-year referral agreement with Kiwibank
allows their customers to insure their assets directly with
Tower under Tower branded policies.
HealthCarePlus
HealthCarePlus is jointly owned by the five education
unions and the Public Service Association, supporting
more than 180,000 members across the teaching,
tertiary and public service sectors.
Our partnership with HealthCarePlus provides its
members with access to Tower’s products via the
HealthCarePlus website and member platform.
Welcoming the Kiwibank team to Tower.
• Supreme Award for Retention –
First Place
• Most Outstanding
Outbound Representative –
Tower Partnership Sales
Consultant Molly Stokes
• Outbound Business to
Consumer Gold Award –
Second Place
• Outbound Business to
Business Silver Award –
Third Place
19ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Using data driven decision-making to
manage premiums and our business
Our commitment to careful risk
selection and robust underwriting
supports a strong core business,
enabling us to offer tailored pricing
to customers with lower risks.
Key to our resilience is our ability to monitor
and adjust our pricing and underwriting
to remain competitive and responsive to
macroeconomic conditions.
As part of this, in FY23 and FY24, we tightened our
risk appetite for vehicles with high theft-risks. This
contributed to a reduction in customer numbers from
311,000
1
in FY23 to 305,000 in FY24, as Tower reduced
high theft-risk motor policies by over 5,000 throughout
the year.
As claims cost performance improved in certain
customer segments, we were able to reduce
some premiums.
For our customers, this meant that as inflation began to
settle later in the year, we moved quickly to moderate
premium increases, particularly for low-risk assets.
This included a review of motor pricing performance
for the 100 most common makes and models
(including all years and specifications), representing
70% of Tower’s motor portfolio. The review led to a
reduction in premiums of varying levels for 71% of the
models reviewed.
A range of factors have influenced premium increases
over recent years including; inflation, crime rates,
weather events, reinsurance costs, and supply
chain pressures.
While it costs more now to cover our customers and
their assets, we continue to manage the impact of some
increases in claims costs through business efficiencies,
risk-based pricing, our claims transformation project and
underwriting automation.
1
FY23 customer numbers have been adjusted to exclude sold and held for sale
portfolios which include Papua New Guinea and Solomon Islands businesses,
Vanuatu subsidiary, and exit of NZ rural commercial portfolio.
Pricing and underwriting
adjustments made
across FY24
68
20ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Putting things right for
our customers
An important part of delivering a
positive customer experience is fixing
things when we don’t get them right.
We continue to focus on putting
things right for customers who had
not received the discounts or benefits
they were entitled to.
We’re pleased to have made significant progress
towards remediating customers identified as being
owed a premium refund, due to errors in applying our
multi-policy discount.
As of 30 September 2024, we have identified refunds
of around $12 million (including GST and interest)
owed to 66,000 customers and have repaid over $11m.
Other remediations we have in progress relate to
premium overcharges in connection with the
application of promotions and policy discounts,
and other policy errors. For all current customer
remediations, we’ve provisioned $9.2m as at the
end of FY24.
Remediation activities are carried out by our
Foundations First taskforce. You can read more about
Foundations First on page 32 of this report.
This year, the FMA issued proceedings against Tower in
respect of overcharges related to the application of its
multi-policy discount. We continue to engage with the
FMA in relation to our multi-policy discount remediation.
Tower's customer care centre.
21ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainability2024 in reviewOur strategy

Operationally
efficient
ANNUAL REPORT 2024222024 in review ContentsGRI content index Corporate governanceConsolidated financial statementsSustainabilityOur strategy

In line with our strategy, throughout
FY24 Tower continued to digitise and
automate core processes, and leverage
our geographical footprint to become
more operationally efficient and effective.
Efficient and effective
1
COR impacted by higher large event costs in FY23 (Auckland floods and Cyclone Gabrielle), and no large events in FY24.
2
Digital service tasks are any policy adjustments made through the My Tower portal divided by the total number of policy adjustments made. In prior years, multiple tasks
completed on the same call were reported as one assisted transaction, which are now reported individually. Digital claims tasks refer to claim lodgement only.
Decrease in NZ sales and
service abandonment
rate, now at 8%
5
%
Minutes and 10
seconds, our average
phone wait time in
FY24 vs. 3 minutes and
33 seconds in FY23
2
Combined operating
ratio (COR) vs. 100.4%
in FY23
1
79
%
Sales and service calls
answered in FY24,
down from 380,000
in FY23
329,000
Service tasks and
transactions completed
digitally in NZ, in line
with FY23
2
45
%
Hours, our average
email response time
in FY24 vs. 45 hours
in FY23
35
Management expense
ratio (MER) down from
32% in FY23
31.4
%
The number of times
customers made manual
payments in My Tower,
our top digital customer
transaction in FY24
142,000
23ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Claims transformation
Our claims transformation
programme aims to harness
data and technology to deliver
straight through claims and
repair experiences.
The programme began in FY23, with
the ultimate goals of transforming and
improving our claims experience, increasing
transparency for customers and operating
more efficiently and effectively.
In FY24, we continued to deliver on this
ambition, automating key manual processes
in our motor and home claims’ journeys.
Continuing to automate the claims journey
In FY24, we continued to automate the claims journey
for house customers in My Tower, using technology to
deliver faster and more efficient claims management.
In March, we updated customers’ claims information
in My Tower to include contact details for their claims
manager. Claims managers are now automatically
assigned at lodgment for house, motor and contents.
This has helped lessen calls to our frontline teams and
made things easier for our customers, with one clear
point of contact for the duration of their claim.
In May, we automated the acceptance of house claims
for our most common types of house claims: weather,
accidental damage and escape of water claims (for
example, water damage from a burst pipe). At the same
time, we automated referrals to assessors or repairers
for these types of claims. This means that claims of this
type, that meet set criteria, are automatically accepted
and or referred to an assessor or supplier for the next
step in the settlement journey, without the need for
manual review.
Since then, two thirds of customers who lodged a
weather, accidental damage or escape of water claim in
My Tower, have had their claim automatically accepted
and or referred to an assessor or house supplier, without
the need for manual processing or review.
While we experienced no large weather events in FY24,
these changes will improve our efficiency and the
customer experience during future events.
Members of Tower's claims and assessing
team at one of our Repair Partner Network's
repair shops in Auckland.
House claims lodged via
My Tower automatically
accepted and or
referred to an assessor
or supplier
1
65
%
Customers accessed
their claims manager’s
name and contact
details via My Tower
2
25,000
1
Applies to claims for weather, accidental damage or escape of water (collectively,
our most common claims), since new system launched in May 2024.
2
Since feature launched in March 2024.
24ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Streamlining the motor repair journey
In April, we announced that we had partnered with
Hello Claims to integrate their assessing and repair
management platform into our online systems, starting
in June.
Previously, it took up to four days on average to accept
a claim, allocate an assessor, process a quote and
authorise work for panel repairs.
Since integrating the new platform into our internal
referral process, when customers lodge a claim in
My Tower and use our Repair Partner Network, our repair
partners automatically receive a referral as soon as the
claim is accepted.
They are then able to make contact and organise
assessments or repairs, without Tower needing to
manually refer customers or sign off repair quotes.
We have been working closely with repairers, as we
embed this new assessing and repair platform into our
systems. Full integration will be completed in early 2025
and will enable customers to view their motor claims
status at every point of the claims journey via My Tower.
Members of Tower's claims and
assessing team with a member
of our Repair Partner Network.
Claims now lodged
online vs. 59% in FY23
64
%
BAU claims ratio
vs. 55% in FY23
48
%
25ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Delivering operational efficiencies
This year, Tower was proud to mark
150 years of operation in Fiji and open
our new Suva hub.
Our Suva hub is a modern work environment that
presents a strategic advantage for Tower. A range of
business units from finance and human resources to
marketing and claims are represented in Fiji.
Our core platform unifies our operations, allowing us
to function as one Tower across all markets we serve.
Over the year, this saw an increase in the volume of
sales and service tasks handled by our Fiji team, for our
New Zealand customers.
The ability to flex resources across locations and
departments to meet demand helps us deliver a
consistent experience for all our customers, while
increasing business resilience.
“We are opening doors to opportunity,
growth and prosperity...Tower, over the
years, has shown a steadfast commitment
to enhancing the landscape of Fiji. I also
acknowledge Tower’s continuous efforts
to enhance efficiency, productivity, and
employee development.”
- The Hon. Professor Biman Prasad, Deputy Prime Minister
of Fiji, at the opening of Tower’s Suva hub, in February.
The Hon. Professor Biman Prasad, Deputy Prime Minister of Fiji.
Years in operation
150
Of Tower Fiji staff
are locals
100
%
Of staff have previous
experience in international
businesses
94
%
Of NZ sales and service
calls answered by Suva
hub vs. 16% in FY23
55
%
Team members across
all multiple business
functions
300
+
Of Tower Fiji’s leadership
team are women
80
%
26ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainability2024 in reviewOur strategy

Doing business in Fiji makes good
business sense
In June, the Rt. Hon. Christopher Luxon, Prime Minister
of New Zealand visited our Suva hub, as part of the
New Zealand government’s Pacific trade visit.
The visit was a chance for Tower to showcase
our people, the benefits of our Suva hub, and our
parametric cyclone product.
“To see an incredible business like we
saw this morning with Tower actually, that
is trailblazing a world class organisation
here in Suva.”
- The Rt. Hon. Christopher Luxon, Prime Minister
of New Zealand, The Fiji Times, June 7 2024.
The Rt. Hon. Christopher Luxon, Prime Minister of New Zealand at our Suva hub.
27ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

In FY24 we completed the sales of our Solomon
Islands business and Vanuatu subsidiary.
This follows the sale of the Papua New Guinea subsidiary in FY23.
The establishment of our new Suva hub and these sales reinforce
the actions Tower has taken over the last three years to streamline
our Pacific operations, refine our risk appetite, and enhance our
digital and operational proposition in key Pacific markets.
Our remaining Pacific businesses in Fiji, Tonga, Samoa, American
Samoa and the Cook Islands have the infrastructure required to
successfully operate and upgrade My Tower.
These capabilities are crucial to our strategy to deliver a leading
customer experience for personal lines and small to medium
enterprises (SMEs) in the Pacific.
Team members at Tower’s Suva hub.
Streamlining and strengthening
our Pacific operations
Pacific markets;
Fiji, Tonga, Samoa,
American Samoa,
and the Cook Islands
5
Pacific GWP, a 2%
1

decrease from FY23
$
48
m
1
Adjusted to exclude divested portfolios which include the Solomon Islands
business and Vanuatu subsidiary.
28ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Resilient
29ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Here for our customers
at claims time
We’re committed to helping
customers recover from a loss
at claims time – it’s what we are
here for.
While we experienced no large weather or natural
hazard events in New Zealand or across the Pacific
in FY24, we still helped our customers protect
the things that matter to them, reporting 67,500
everyday claims*.
* While there were no large weather
events in FY24, our everyday claims
figure still includes claims for weather
related damage.
12,200
Kiwi house claims for
garages, mostly due to
damage by a vehicle
or trailer
1,100
Travel insurance policies
for trips to Australia, our
most popular destination
4,000
Of travel claims were for
baggage and personal
effects in FY24
14
%
Boat claims were for
mishaps while fishing
on jet skis
1.5
%
Boat claims happened on
the way to or after leaving
the boat ramp
8.5
%
New couches supplied
to living rooms
throughout NZ
219
Claims for new glasses,
mostly due to sitting
on them
2,200
NZ motor claims for
damage that occurred
while stopped or parked
30ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainability2024 in reviewOur strategy

Claims for
Pacific homes
98
Claims for
Kiwi homes
13,300
Smashed window claims
for Kiwi homes
1,700
Pacific motor claims
1,600
31ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Strengthening the
foundations of our
business
We launched Foundations First, in
April 2024, a strategically important
programme for our business.
Key projects under Foundations First include:
• Carrying out all customer remediations
• Investigating root causes of various incidents with
a view to developing strategies to address those
root causes
• Enhancing delivery and project execution
• Improving end-to-end customer data management
at Tower.
The Foundations First programme will ultimately
drive outcomes that will help increase business
resilience to support good customer experiences
and sustainable growth in a competitive market.
Our Foundations First programme is
complemented by Tower's process excellence
initiative, which focuses on end-to-end process
simplification and risk reduction opportunities.
Tower's customer care centre.
32ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Tower’s reinsurance arrangements limit
Tower’s exposure to the impacts of large
events and maintain financial flexibility
to support growth, while underpinning
strong solvency.
We renewed our reinsurance programme for FY25, with
comprehensive reinsurance cover at competitive rates for
our home, motor, boat and commercial portfolios across
New Zealand and our Pacific markets.
To support growth and align with our prudent risk appetite,
Tower’s FY25 reinsurance programme includes:
• Increased catastrophe upper limit of $800m for the first
two events, up from $750m in FY24
• Increased cover for a third catastrophe event up to
$85m, up from $75m in FY24
• Reinsurance excess of $18.75m for the first two
events, up from $16.9m in FY24, due to expiring
multi-year arrangements
• $20m excess for a third event, unchanged from FY24.
Tower’s focus on risk-based pricing combined with our
dynamic rating ability helped us secure favourable terms
for our FY25 reinsurance. We’ve further strengthened
relationships with global reinsurers, with several agreeing to
new multi-year arrangements, providing greater long-term
certainty of reinsurance costs and catastrophe excesses.
Securing a programme with stable excesses and pricing
helps us to maintain competitive pricing for customers.
Robust reinsurance to support
growth and strong solvency
Cover in place for first
two catastrophe losses
in FY25
$
800
m
Cover in place for a
third catastrophe event
in FY25
$
85
m
33ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Effective &
distinctive
culture
ANNUAL REPORT 2024342024 in review ContentsGRI content index Corporate governanceConsolidated financial statementsSustainabilityOur strategy

Our people
come first
We’re committed to making Tower
an even better place to work,
enabling us to attract and retain
talented individuals and empower
our teams to do great things.
Employee engagement score*
8.1
Employees are non-European,
based on the 92% of staff
who chose to disclose
their ethnicity
68
%
Twice a year we ‘check in’ via employee engagement
surveys, which have shown increasing levels of
engagement and connection to Tower.
We know that diversity is essential for a business to
thrive, innovate and succeed in a competitive market so
we’re proud to share that all our employee diversity and
inclusion (D&I) scores, have continued to increase.
*
As at 13 September 2024, based on Tower’s latest staff engagement survey
In our latest survey* our overall D&I score was 8.9, up
from 8.6 in FY23, placing Tower in the top 10% of the
global finance sector. Inclusiveness, feeling valued and
belonging all received scores of 8.4, marking an increase
of 0.1-0.4 compared to FY23.
Tower head office celebrating being announced as a finalist in the 2024 ANZIIF
New Zealand Insurance Industry Awards’ Excellence in Workplace DE&I category.
35ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Quarterly staff awards for living our values.
Committed
to our people
36ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

We know that by taking care of our
people, we enable them to show
up in the best way possible for
our customers.
In FY24 we continued to enhance the Tower experience
for our people. We offer a range of benefits and flexible
working options, including the ability to use discretionary
leave and purchase up to eight additional days beyond
the initial four-week entitlement, to help employees
proactively manage their personal and family wellness. In
the year we also ran 18 financial and emotional wellbeing
sessions for our teams.
All of these actions contributed to our high employee
health and wellbeing score, at 8.5*, in the top 25% of the
global finance sector.
Looking after
our people
*
As at 13 September 2024, based on Tower’s latest staff engagement survey
Fiji Human Resources
Institute Awards,

Silver Award for HR
Practicing Leader 2024
– Monish Chand
Weeks full pay parental
leave for primary carers
16
Gender affirmation
leave
Paid day off on or
near your birthday
1
Weeks full pay for partners
(all parental leave also
applied to adoptions)
4
Days wellbeing leave
10
Day of volunteer leave
per year
1
The Tower Tonga team.
The Tower American Samoa team.
37ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Tower became one of the first 50
businesses to join New Zealand’s Mind
the Gap register in 2022, to publicly
report on pay gap data.
Our FY24 pay equity data is below.
Leadership gender pay gap
Comparing our senior leadership population and
the average pay gap between men and women, our
New Zealand leadership pay gap is -4.6% (women are
paid 4.6% more than men, this is because our lower
level leadership roles have a higher proportion of
men, which impacts the overall weighted average).
-4.6
%
Leadership gender pay equity gap
When we compare like-for-like roles for our
leadership population at Tower in New Zealand, our
leadership pay equity gap is [0.1%] (men are paid 0.1%
more than women for the same role).
0.1
%
Gender pay equity gap
When we compare like-for-like roles for women and
men, our pay equity gap is 0.9% for our workforce in
New Zealand, and 1.9% for our workforce in Fiji (men
are paid 0.9% more than women for the same role in
New Zealand and 1.9% more in Fiji).
0.9
%
Gender pay gap
When we take the total salary for all women and
divide that by the number of women, and the total
salary of all men and divide that by the number
of men, we have a gap of 20.2% for our workforce
in New Zealand, and a gap of 9.5% for our work
workforce in Fiji. For the most part, this is because we
have a larger proportion of of women in frontline roles.
20.2
%
Staff at Tower's head office.
ANNUAL REPORT 2024382024 in reviewSustainabilityOur strategy ContentsGRI content index Corporate governanceConsolidated financial statements

For Tower, by
Tower people
Our employee representation
groups (ERGs) champion the unique
backgrounds and perspectives of
our teams.
They work to enhance, celebrate and continuously
improve diversity, equity and inclusion in our
organisation, and regularly contribute to our fortnightly
all staff meetings.
In FY24 our ERGs led events, among others, for Matariki,
Diwali, Lunar New Year, Te Wiki o te Reo Māori, other
language weeks for our Pacific operations, and raised
over $10,800 for Sweat with Pride 2024 (one of the top
10 highest contributions by a workplace in New Zealand).
1. Rainbow Network (LGBTIQ+).
2. Mana Wahine Toa (women’s
network).
3. Ahi Kā (Māori roopu).
4. SPARK (supporting physical and
neurodiversity, advocacy, respect
and knowledge) Network.
5. We@Tower Group
(celebrates cultural diversity).
6. Mera Hanua (celebrates
cultural diversity in Fiji).
7. Tower Bula Fiji (focused
on staff wellbeing).
of Tower staff are
members of an ERG
30
%
123
4
7
56
ERGs at Tower
7
39ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Strengthening
our culture of risk
awareness
Risk management is central to Tower’s
strategic and operational activities
and is underpinned by Tower’s
enterprise-wide Risk Management
Framework (RMF).
The RMF sets out guiding principles to enable Tower
to identify, assess, monitor and mitigate risk to support
the achievement of our strategic objectives.
Part of this strategy in FY24, was to enhance Tower’s
culture of risk awareness. During the year, this included
strengthened risk assessment and incident management
practices and a dedicated focus on process excellence.
Tower’s work on conduct through the Conduct of
Financial Institutions (CoFI) lens will further advance
fair customer outcomes. Through Foundations First,
root cause analysis was also undertaken to understand
and address key issues and causes of incidents across
people, processes, systems, and culture.
Pleasingly, in FY24 we saw an uplift in all employee
scores for risk culture and awareness*.
Risk Culture employee
score, up 0.2 in FY24*
8.3
Employee score for
‘managing risks across
our business is a part of
Tower’s culture’, up 0.2
in FY24*
8.6
* Employee engagement surveys are run twice yearly, in March and
September, scores are compared from our March 2024 survey and
our latest survey, completed September 13 2024.
Staff at Tower's head office.
40ANNUAL REPORT 20242024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index ContentsOur strategy

Environmental,
social and
governance
performance
41ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsOur strategy2024 in reviewSustainability

Fostering a more
sustainable
business for
our customers,
communities
and planet
Our sustainability strategy
guides how we manage relevant
environmental, social and
governance issues and provides a
framework for managing our most
material impacts. It was developed
to enable us to deliver on our
company purpose:
To inspire, shape and protect the future
for our customers and communities.
42ANNUAL REPORT 2024
A diverse and inclusive workplace that builds
people’s physical and emotional wellbeing.
DIVERSE AND
INCLUSIVE TO THE CORE
Moving all aspects of our business towards
zero-carbon and zero waste, and ensuring we
have a positive impact on Aotearoa and the
Pacific, now and in the future.
THINKING AHEAD
FOR OUR PLANET
Championing informed dialogue about
climate change and pursuing win-win
outcomes that tackle sustainability issues.
HELPING COMMUNITIES NAVIGATE
CLIMATE CHANGE
Providing no-surprises, easy to understand
insurance that is accessible and affordable.
PEOPLE’S GO-TO TRUSTED
INSURANCE PARTNER
Our strategy2024 in reviewConsolidated financial statementsCorporate governanceGRI content index ContentsSustainability

ESG Governance
Tower’s Board promotes the development of
Tower’s ESG practices, monitoring performance
via periodic management updates.
ESG governance is formalised through an
executive-level steering committee, chaired
by our CEO, which oversees progress on our
initiatives and monitors environmental and social
risks. Our ESG performance is coordinated by the
Head of Corporate Affairs and Sustainability and
supported by our Sustainability Manager.
In FY24 Tower delivered its first Climate
Related Financial Disclosures (CRD). This work
included the development of a new governance
framework which covers ESG and climate change
issues. You can find detailed information about
our governance of climate change and ESG
issues in our 2024 Climate Statement, in the
sustainability section of our website.
43ANNUAL REPORT 2024 ContentsGRI content index Corporate governanceConsolidated financial statementsOur strategy2024 in reviewSustainability

We hosted four virtual all-staff lunch-and-learn sessions
for Plastic Free July, focusing on the uses and types of
plastics, as well as strategies to eliminate single-use plastics
from our home and work environments. These sessions aimed
to encourage our staff to make more sustainable choices.
4
Executive and Senior Leadership team members completed
training on climate disclosures and Tower’s Climate-Related
Disclosure obligations.
18
Staff completed Climate Fresk training. Delivered to more
than 1.7m people globally, Climate Fresk teaches the basics
of climate science in a fun and interactive workshop that
explores the causes and effects of climate change and
empowers people to take high impact actions. During the
year, Tower also hosted two community Fresk workshops,
at our head office.
33
Staff attended Sustainability Foundations Training.
The sessions provided participants with a clear
understanding of key sustainability concepts.
40
This year we focused on upskilling our people on
sustainability issues to further embed a culture of
sustainability across our business activities.
During the year, senior leaders and other team members took part in training
focused on the fundamentals of sustainability, climate change and relevant
legislative and regulatory requirements.
Bringing our people on the
sustainability journey
Staff at Tower's head office.
44ANNUAL REPORT 2024Our strategy2024 in reviewConsolidated financial statementsCorporate governanceGRI content index ContentsSustainability

We're proud to support the next
generation of climate leaders.
Tower has supported students studying the University of
Waikato’s (UoW) world-first Bachelor of Climate Change
degree since its inception in 2021, offering three $5,000
scholarships annually to assist students in their studies.
In FY24 we were pleased to announce Maia Waudby
and Hannah Dagger as the 2024 Tower Climate Change
Scholarship recipients. Both Maia and Hannah are aiming
to use their studies to mitigate the adverse effects of
climate change on Māori and Pacific communities.
As a Kiwi and Pacific insurer, we’re acutely aware of
the climate risks faced by island communities and are
inspired by Maia and Hannah’s passion for helping our
communities navigate the impacts of climate change.
In the year, Maia and other third-year UoW students
worked on a project for Tower, to identify initiatives
to reduce Scope 3 insured emissions related to
customer assets.
During a briefing at our Auckland office, students
learned about insurance fundamentals, Tower’s current
methodology for calculating insured emissions, and
reviewed relevant international case studies.
“The scholarship is definitely a big help.
It’s nice to know that there’s a big insurance
company out there in Tower, that supports
what you do.”
– Maia Waudby,
Tower Climate Change Scholarship recipient.
Tower Climate
Change Scholarship
In FY25, we will evaluate the students’ proposals
to identify the most impactful opportunities for
decarbonisation, while considering the needs of
our communities, customers, other stakeholders
and business.
UoW student briefing for emissions reduction project.
45ANNUAL REPORT 2024Our strategy2024 in reviewConsolidated financial statementsCorporate governanceGRI content index ContentsSustainability

“This scholarship serves as a catalyst
for personal growth, equipping me with
essential skills while fostering connections
that will enhance my capacity as a future
leader in my home country.”
- Saula Baleinubu,
Tower Vunilagi Scholarship recipient.
During celebrations to mark 150 years
in operation in Fiji, we launched the
Tower Vunilagi Scholarship.
Launched in June, each year the Tower Vunilagi
Scholarship will be awarded to students who demostrate
potential to be future Tower leaders, helping us build
an even better business and create a more equitable,
resilient and sustainable future for all Fijians.
Reflecting the purpose of the scholarship, the word
‘vunilagi’ means ‘new horizons’.
The scholarship covers a full year of tuition fees for three
students in their final year of bachelor’s degree study at
The University of the South Pacific (USP).
Recipients will also complete paid internships with Tower.
This year’s successful applicants; Shaunil Chand
(Bachelor of Commerce, Accounting and Finance),
Shayal S Gosai (Bachelor of Commerce, Accounting and
Finance) and Saula Baleinubu (Bachelor of Arts in Social
Work and Sociology), will begin their internships with
Tower Fiji in the first half of FY25.
Tower Vunilagi
Scholarship
Tower leadership team members with the 2024
Tower Vunilagi Scholarship recipients.
46ANNUAL REPORT 2024Our strategy2024 in reviewConsolidated financial statementsCorporate governanceGRI content index ContentsSustainability

At Tower, permanent, full-time
employees receive one annual
volunteer leave day to support a
cause they are passionate about.
Teams can decide on projects together, or individual
staff members choose a cause close to their hearts
to support.
We relaunched our volunteer leave programme in Q4 of
FY23, with a target of 1,000 volunteer hours spent in our
communities for FY24.
In line with our purpose, we’re proud to report that our
teams recorded 2,300 hours of volunteer leave in FY24,
up from 390 hours in FY23.
We look forward to building on our volunteer efforts in
FY25 and have set a target of 2,500 hours.
“We’ve been receiving food from Fair
Food since our programme began, and we
remain so incredibly grateful. Fair Food is
part of helping our women succeed.”
– Helen,
Fair Food Young Mums Programme.
2,300 hours of
volunteering by our
people
Mural painting at the National Council
for Persons with Disabilities' school, Fiji.
Volunteering at Papatoetoe
Central School, NZ.
Fair Food, New Zealand.Beach cleanup, American Samoa.
47ANNUAL REPORT 2024Our strategy2024 in reviewConsolidated financial statementsCorporate governanceGRI content index ContentsSustainability

FY24 is our first year of mandatory
disclosure, under the Climate-Related
Disclosure regime.
Tower has tracked Scope 1, 2 and selected Scope 3
emissions for our operations across New Zealand and
the Pacific since 2020.
In FY24 we reduced our Scope 1 and 2 emissions by 20%
from our 2020 baseline and by 9% compared to FY23.
Our full greenhouse gas emissions report is provided in
our Climate Statement 2024, which is in the sustainability
section of our website. The Statement contains our
Scope 1, Scope 2 and operational Scope 3 emissions
data, as well as information about our work to identify
and assess our climate related risks, opportunities and
business impacts.
In FY25, we will also assess material Scope 3 emissions
related to the assets we insure and our supply chain.
This will help us better understand our upstream and
downstream carbon footprint, including contributions
from our partners and customers, and support a low
emission, climate resilient future.
Future focused
for our planet
48ANNUAL REPORT 2024Our strategy2024 in reviewConsolidated financial statementsCorporate governanceGRI content index ContentsSustainability

Material impacts
Each financial year, we review the material impacts
identified in our baseline FY21 Materiality Assessment,
which serves as the foundation of our 2020-2025
Sustainability Strategy.
Our priority impacts remained unchanged in FY24.
However, given New Zealand’s cost of living crisis, there
is a greater need to support affordable and accessible
insurance products for our communities. Our ways to
save and pricing and underwriting features on pages 13
and 20 outline some of the actions we are taking
to manage this challenge.
Our 12 most material topics are;
• affordable and accessible insurance,
• diversity and inclusion,
• employee wellbeing,
• transparent insurance,
• product development and innovation,
• data protection,
• managing the impacts of climate change,
• corporate and community citizenship,
• carbon emissions,
• corporate governance,
• environmental footprint,
• responsible investment.
The details of Tower’s material impacts including the
actions we are taking to manage these, and our targets
are available in our material impacts table, which can
be found in the sustainability section of our website.
B Corp
In FY24, work continued towards obtaining B
Corp certification. Tower completed the B Corp
Business Impact Assessment and has submitted
its application for certification. We are currently
in the evaluation stage, working with B Corp to
advance to the verification stage. We look forward
to sharing more information with the market as our
application progresses.
49ANNUAL REPORT 2024Our strategy2024 in reviewConsolidated financial statementsCorporate governanceGRI content index ContentsSustainability

Board of Directors
Independent
Director from: 12 October 2012
Graham Stuart
BCom (Hons), MS, FCA
Non-Executive Director
Geraldine McBride
BSc
Non-Executive Director
Michael Stiassny
LLB, BCom, CFInstD
Chairman
Non-Executive Director
Michael holds both a Commerce and Law degree
from the University of Auckland and is a Chartered
Fellow and past President of the Institute of Directors.
Michael has enjoyed a high-profile governance career
and is currently Chairman of 2 Cheap Cars Group
Limited, and director of Momentum Life Insurance
Limited, Tegel Group Holdings Limited, and New
Talisman Gold Mines Limited.
With a keen interest in fostering successful next
generation New Zealand businesses, Michael
also dedicates significant time to start ups and
championing entrepreneurship through his
involvement in Founders Advisory.
Michael resides in Auckland — New Zealand.
Independent
Director from: 24 May 2012
Graham is an experienced Director, with over 30 years’
experience in governance roles in New Zealand and
internationally. He is currently the Chair of NorthWest
Healthcare Property Management Limited and Comhla
Vet Limited and a Director of VinPro Limited. Previous
executive roles include Sealord Group CEO, Fonterra
Co-operative Group CFO and Director of Strategy and,
Lion Nathan International Managing Director.
Graham has a Bachelor of Commerce (First Class Hons)
from the University of Otago, a Master of Science from
Massachusetts Institute of Technology and is a Fellow
of Chartered Accountants Australia and New Zealand.
He has served on multiple Government bodies including
the Food & Beverage Taskforce, Māori Economic
Development Panel and as Chair of the Lincoln Hub
Establishment Board.
Graham resides in Auckland — New Zealand.
Independent
Director from: 1 October 2022
Geraldine has extensive governance and technology
industry experience, having performed Board and senior
leadership roles both in New Zealand and internationally,
with Sky Network Television Limited, SAP, Dell, IBM,
National Australia Bank and Fisher & Paykel Healthcare.
Geraldine is the founder and CEO of MyWave. Geraldine
holds a Bachelor of Science from Victoria University and
is a Chartered Member of the NZIOD.
Geraldine resides in Christchurch — New Zealand.
50ANNUAL REPORT 2024Our strategy2024 in reviewConsolidated financial statementsCorporate governanceGRI content index ContentsSustainability

Marcus Nagel
MBA (International Management),
MBA (Banking and Finance)
Non-Executive Director
Mike Cutter
BSc (Hons) GAICD
Non Executive Director
Non-independent
Director from:
14 January 2019
Marcus has significant insurance industry experience.
For a decade he has performed senior leadership roles
for Zurich in Europe and globally. In his last role at
Zurich, he served as the Chief Executive Officer of Zurich
Germany managing both life insurance and general
insurance businesses. Marcus holds a Master’s Degree in
Banking and Finance from Goethe University in Frankfurt,
Germany and Master of International Management
from the Arizona State University Thunderbird School of
Global Management in Arizona, United States of America.
Marcus was nominated by Bain Capital Credit LP
(Bain Capital) to represent Bain Capital’s stake in Tower
(Bain Capital hold 20.00% of Tower’s ordinary shares)
and his appointment was supported by the Tower Board.
Marcus resides in Schindellegi — Switzerland.
Independent
Director from:
17 November 2023
Mike has significant experience in a range of financial
services businesses in Australia, New Zealand, Asia and
Europe. He is the Chair of Arteva Funding and Fairway
Group Limited, and a Non-Executive Director of Pepper
Money. He is the co-founder of Kadre, a credit risk
management consultancy.
Mike has recently served as interim Managing Director
for Bambora Aus and was previously the Group
Managing Director for Equifax ANZ. Before this he held
various senior roles with GE, ANZ, Wesfarmers/OAMPS
Insurance Brokers, Halifax/BankOne and NAB.
Mike is a Senior Fellow of Financial Services Institute
of Australia. He has served on the Boards of the
Women’s Cancer Foundation, Ovarian Cancer Institute,
the Australian Finance Congress, the National
Insurance Brokers Association and the Australian Retail
Credit Association.
Mike resides in Melbourne – Australia.
51ANNUAL REPORT 2024Our strategy2024 in reviewConsolidated financial statementsCorporate governanceGRI content index ContentsSustainability

Consolidated
financial statements
ANNUAL REPORT 202452 ContentsGRI content index Corporate governanceConsolidated financial statementsSustainabilityOur strategy2024 in review

Financial Statements
Consolidated statement of comprehensive income
54
Consolidated balance sheet55
Consolidated statement of changes in equity56
Consolidated statement of cash flows57
Notes to the consolidated financial statements
1Overview58
1.1About this report58
1.2Consolidation58
1.3Critical accounting judgements and estimates60
1.4Changes in accounting policies and disclosures60
1.5Segmental reporting61
2Insurance and reinsurance contracts63
2.1Insurance and reinsurance contracts accounting policies63
2.2Insurance service expense and other operating expenses65
2.3Net insurance finance expense66
2.4Insurance and reinsurance assets and liabilities66
2.5Receivables73
2.6Payables74
2.7Provisions74
3Investments and other income75
3.1Investment income75
3.2Investments75
3.3Other income76
4Risk management76
4.1Risk management overview76
4.2Strategic risk77
4.3Insurance risk77
4.4Credit risk78
4.5Market risk80
4.6Liquidity risk81
4.7Capital management risk82
4.8Operational risk83
4.9Regulatory and compliance risk83
4.10Conduct risk83
4.11Cyber risk83
4.12Environment, Social and Governance (ESG) risk84
5Capital structure84
5.1Contributed equity84
5.2Reserves85
5.3Net tangible assets per share85
5.4Earnings per share85
5.5Dividends85
6Other balance sheet items86
6.1Property, plant and equipment86
6.2Intangible assets87
6.3Leases89
7Tax 91
7.1Tax expense91
7.2Current tax91
7.3Deferred tax92
7.4Imputation credits93
8Other information94
8.1Notes to the consolidated statement of cash flows94
8.2Related party disclosures95
8.3Auditor's remuneration95
8.4Discontinued operations96
8.5Tower Long-Term Incentive Plan97
8.6Contingent liabilities98
8.7Capital commitments98
8.8Subsequent events98
Independent Auditor's report, and Appointed Actuary's report
Independent Auditor's report99
Appointed Actuary's report103
ANNUAL REPORT 202453Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

Consolidated statement of comprehensive income
FOR THE YEAR ENDED 30 SEPTEMBER 2024
NOTE
2024
$000
RESTATED
2023
$000
Insurance revenue555,818 472,611
Insurance service expense2.2(381,608)(604,851)
Insurance service result before reinsurance contracts held174,210 (132,240)
Net (expense)/income from reinsurance contracts held(91,364)124,360
Insurance service result82,846 (7,880)
Investment income3.121,800 14,627
Investment expense(250)(298)
Net investment income21,550 14,329
Finance expense from insurance contracts issued2.3(5,592)(1,510)
Finance income from reinsurance contracts held2.33,020 162
Net insurance finance expense(2,572)(1,348)
Net insurance and investment result101,824 5,101
Other income4,064 5,727
Other operating expenses2.2(2,348)(2,145)
Finance costs(882)(920)
Profit before taxation from continuing operations102,658 7,763
Tax expense from continuing operations7.1(31,774)(5,176)
Profit after taxation from continuing operations70,884 2,587
Profit/(loss) after taxation from discontinued operations8.43,401 (3,609)
Profit/(loss) after taxation for the year74,285 (1,022)
NOTE
2024
$000
RESTATED
2023
$000
Items that may be reclassified to profit or loss
Currency translation differences(1,308)(1,494)
Reclassification of the foreign currency translation reserve8.4410 544
Other comprehensive loss net of taxation(898)(950)
Total comprehensive profit/(loss) for the year73,387 (1,972)
Earnings per share:
Basic earnings per share (cents) for continuing operations5.418.7 0.7
Basic earnings per share (cents) for profit attributable to
shareholders5.419.6 (0.3)
Profit/(loss) after taxation attributed to shareholders74,285 (1,022)
Total comprehensive profit/(loss) attributed to shareholders73,387 (1,972)
Refer to note 1.1d for further details of the restatement of the comparative period.
The above statement should be read in conjunction with the accompanying notes.
ANNUAL REPORT 202454Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

Consolidated balance sheet
AS AT 30 SEPTEMBER 2024
NOTE
2024
$000
2023
$000
RESTATED
2022
$000
Assets
Cash and cash equivalents8.175,390 64,009 84,502
Investments3.2367,506 258,798 258,634
Receivables2.519,799 16,797 13,408
Current tax assets7.2a13,222 12,917 13,069
Assets classified as held for sale8.4 – 11,505 16,673
Reinsurance contract assets2.435,503 147,236 26,918
Deferred tax assets7.3a382 16,074 16,492
Right-of-use assets6.3a19,990 23,204 23,326
Property, plant and equipment 6.16,735 6,280 5,417
Intangible assets6.296,621 98,524 94,653
Total assets635,148 655,344 553,092
Liabilities
Payables2.632,287 18,378 20,861
Insurance contract liabilities2.4177,569 285,809164,912
Current tax liabilities7.2b606 198 136
Liabilities classified as held for sale8.4 – 7,609 5,119
Provisions2.721,959 12,823 11,873
Lease liabilities6.3a28,855 32,615 35,054
Deferred tax liabilities7.3b13,716 178 339
Total liabilities274,992 357,610 238,294
Net assets360,156 297,734 314,798
NOTE
2024
$000
2023
$000
RESTATED
2022
$000
Equity
Contributed equity5.1460,734 460,315 460,191
Retained earnings/(losses)4,428 (58,473)(43,942)
Reserves5.2 (105,006)(104,108)(101,451)
Total equity360,156 297,734 314,798
Refer to note 1.1d for further details of the restatement of the comparative periods.
The above statement should be read in conjunction with the accompanying notes.
The financial statements were approved for issue by the Board on 28 November 2024.
Michael P Stiassny Graham R Stuart
Chairman Director
ANNUAL REPORT 202455Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

Consolidated statement of changes in equity
YEAR ENDED 30 SEPTEMBER 2024
ATTRIBUTED TO SHAREHOLDERS
NOTE
CONTRIBUTED
EQUITY
$000
RETAINED
EARNINGS/
(LOSSES)
$000
RESERVES
$000
TOTAL EQUITY
$000
Year Ended 30 September 2024
Balance as at 30 September 2023 (restated)460,315 (58,473)(104,108)297,734
Comprehensive income
Profit for the year –74,285 –74,285
Currency translation differences––(1,308)(1,308)
Reclassification of foreign currency translation reserve to profit or loss8.4––410 410
Total comprehensive income–74,285 (898)73,387
Transactions with shareholders
Dividends paid5.5–(11,384)–(11,384)
Share rights issued under Tower Long-Term Incentive Plan8.5419 ––419
Total transactions with shareholders419 (11,384)–(10,965)
At the end of the year460,734 4,428 (105,006)360,156
Year Ended 30 September 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 October 20221.4 – (2,730) – (2,730)
Restated balance at beginning of the year460,191 (43,942)(101,451)314,798
Comprehensive loss (restated)
Loss for the year – (1,022) – (1,022)
Currency translation differences – – (1,494)(1,494)
Reclassification of foreign currency translation reserve to profit or loss8.4 – – 544 544
Revaluation surplus transferred to retained earnings5.2 – 1,707 (1,707) –
Total comprehensive loss (restated) – 685 (2,657)(1,972)
Transactions with shareholders
Dividends paid – (15,216) – (15,216)
Share rights issued under Tower Long-Term Incentive Plan8.5124 – – 124
Total transactions with shareholders124 (15,216) – (15,092)
At the end of the year (restated)460,315 (58,473)(104,108)297,734
Refer to note 1.1d for further details of the restatement of the comparative period.
The above statement should be read in conjunction with the accompanying notes.
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Consolidated statement of cash flows
FOR THE YEAR ENDED 30 SEPTEMBER 2024
NOTE
2024
$000
RESTATED
2023
$000
Cash flows from operating activities
Premiums received for insurance contracts issued560,514 482,701
Insurance acquisition costs paid(68,119)(58,441)
Reinsurance paid(72,944)(69,508)
Interest received 17,606 11,611
Fee and other income received2,857 2,920
Insurance claims paid and other insurance service expenses(386,791)(420,279)
Reinsurance recoveries received91,551 78,487
Other operating payments(2,348)(2,145)
Income tax paid(1,011)(1,805)
Operating activities cash flow from discontinued operations3,872 (15,276)
Net cash inflow from operating activities 8.1 145,187 8,265
Cash flows from investing activities
Proceeds from sale of interest bearing investments404,097 256,607
Payments for purchase of interest bearing investments(503,035)(255,111)
Payments for purchase of intangible assets (17,395)(15,299)
Payments for purchase of customer relationships6.2 – (5,900)
Proceeds from sale of property, plant & equipment 30 5,746
Payments for purchase of property, plant & equipment (2,360)(2,557)
Net proceeds from sale of discontinued operations2,019 2,658
Investing activities cash flow from discontinued operations76 1,427
Net cash outflow from investing activities (116,568)(12,429)
NOTE
2024
$000
RESTATED
2023
$000
Cash flows from financing activities
Dividends paid(11,384)(15,213)
Payments relating to lease liabilities6.3 (5,064)(6,980)
Financing activities cash flow from discontinued operations(25)(56)
Net cash outflow from financing activities (16,473)(22,249)
Net increase/(decrease) in cash and cash equivalents12,146 (26,413)
Effect of foreign exchange rate changes(2,067)(575)
Cash and cash equivalents at the beginning of the year 65,311 92,299
Cash and cash equivalents at the end of the year 75,390 65,311
Cash from discontinued operations 8.4 – 1,302
Cash and cash equivalents at the end of the year
from continuing operations75,390 64,009
Refer to note 1.1d for further details of the restatement and re-presentation of the comparative period.
The above statement should be read in conjunction with the accompanying notes.
ANNUAL REPORT 202457Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

1 Overview
This section provides information that is helpful to an overall understanding of the financial statements
and the areas of critical accounting judgements and estimates included in the financial statements.
It also includes a summary of Tower’s operating segments.
1.1 About this Report
a. Entities reporting
The financial statements presented are those of Tower Limited (the Company) and its subsidiaries.
The Company and its subsidiaries together are referred to in this financial report as Tower or the Group.
The address of the Company’s registered office is 136 Fanshawe Street, Auckland, New Zealand.
During the periods presented, the principal activity of the Group was the provision of general insurance. The
Group predominantly operates in New Zealand with some of its operations based in the Pacific Islands region.
The financial statements were authorised for issue by the Board of Directors on 28 November 2024. The entity’s
owners or others do not have the power to amend the financial statements after issue.
b. Statutory base
Tower Limited is a company incorporated in New Zealand under the Companies Act 1993 and listed on the
NZX Main Board and the Australian Securities Exchange. The Company is a reporting entity under Part 7 of the
Financial Markets Conduct Act 2013.
c. Basis of preparation
The Company is a for-profit entity and the financial statements have been prepared in accordance with
New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with International Financial
Reporting Standards Accounting Standards (IFRS Accounting Standards), New Zealand Equivalents to
International Financial Reporting Standards (NZ IFRS) and other applicable financial reporting standards, as
appropriate for Tier 1 for-profit entities.
The financial statements of the Group have been prepared in accordance with the requirements of Part 7 of the
Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules.
The Group financial statements are presented in New Zealand dollars and rounded to the nearest thousand
dollars. They have been prepared in accordance with the historical cost basis except for certain financial
instruments that are stated at their fair value.
Notes to the consolidated financial statements
d. Restatement and re-presentation of comparatives
As a result of the adoption of NZ IFRS 17 Insurance Contracts (NZ IFRS 17), there have been restatements
made to the comparatives as at 30 September 2023. There are also changes in presentation of the
consolidated statement of comprehensive income, consolidated balance sheet and consolidated statement
of cash flows. Refer to note 1.4a for further details.
In addition to the restatements due to the adoption of NZ IFRS 17 there has been certain reclassifications in
the cash flow statement to ensure the consistency in the presentation in the current year.
e. Discontinued operations
The Group's Solomon Islands Operations (disposal group), and Vanuatu Operations (disposal group) were
disposed in the year ended 30 September 2024.
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 8.4 for further details.
The activities of the businesses have been reported in the current period, and as at 30 September 2023, as a
discontinued operation.
1.2 Consolidation
a. Principles of consolidation
The Group financial statements incorporate the assets and liabilities of all subsidiaries of the Company at
reporting date and the results of all subsidiaries for the year.
Subsidiaries are those entities over which the consolidated entity has control, being power over the investee;
exposure, or rights to variable returns from its involvement with the investee; and the ability to use its power
over the investee to affect the amount of the investor’s returns.
The results of any subsidiaries acquired during the year are consolidated from the date on which control
was transferred to the consolidated entity and the results of any subsidiaries disposed of during the year are
consolidated up to the date control ceased.
Intercompany transactions and balances between Group entities are eliminated on consolidation.
ANNUAL REPORT 202458Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

b. Foreign currency
(i) Functional and presentation currencies
The financial statements of each Group entity are presented in the currency of the primary economic
environment in which the entity operates. The Group financial statements are presented in New Zealand
dollars and rounded to the nearest thousand dollars unless stated otherwise.
(ii) Transactions and balances
In preparing the financial statements of the individual entities, transactions denominated in foreign currencies
are translated into the entities functional and reporting currency using the exchange rates in effect at the
transaction dates. Monetary items receivable or payable in a foreign currency are translated at reporting date
at the closing exchange rate.
Translation differences on non-monetary items such as financial assets held at fair value through profit or loss
are reported as part of their fair value gain or loss.
Exchange differences arising on the settlement or retranslation of monetary items at year end exchange
rates impact profit after tax in the consolidated statement of comprehensive income unless the items form
part of a net investment in a foreign operation. In this case, exchange differences are taken to the foreign
currency translation reserve (FCTR) and recognised (as part of comprehensive profit) in the statement of
comprehensive income and the statement of changes in equity.
(iii) Consolidation
For the purpose of preparing consolidated financial statements, the assets and liabilities of subsidiaries
with a functional currency different to the Company are translated at the closing rate at the reporting date.
Income and expense items for each subsidiary are translated at a weighted average of exchange rates over
the period, as a surrogate for the spot rates at transaction dates. Foreign currency translation differences
are taken to the FCTR and recognised in the statement of comprehensive income and the statement of
changes in equity.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets
and liabilities of the foreign operation and are translated at the closing rate with movements recorded
through the FCTR in the statement of changes in equity.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that
particular foreign operation is recognised in the statement of comprehensive income.
c. Subsidiaries
The table below lists Tower Limited’s principal subsidiary companies and controlled entities. All entities have a
balance date of 30 September.
HOLDINGS
NAME OF COMPANYINCORPORATION20242023
Parent Company
New Zealand general insurance operations
Tower LimitedNZParentParent
Subsidiaries
Overseas general insurance operations
Tower Insurance (Cook Islands) LimitedCook Islands100%100%
Tower Insurance (Fiji) LimitedFiji100%100%
Tower Insurance (PNG) LimitedPNG0%0%
National Pacific Insurance LimitedSamoa100%100%
National Pacific Insurance (Tonga) LimitedTonga100%100%
National Pacific Insurance (American Samoa)
Limited
American Samoa100%100%
Tower Insurance (Vanuatu) LimitedVanuatu0%100%
Management service operations
Tower Services LimitedNZ100%100%
Tower Group Services (Fiji) Pte LimitedFiji100%100%
1.2 Consolidation (continued)
ANNUAL REPORT 202459
Notes to the consolidated financial statements (continued)
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1.3 Critical accounting judgements and estimates
In preparing these 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:
—Insurance and reinsurance contracts
Premium allocation approach (PAA) eligibility note 2.1
Identification of groups of onerous contracts note 2.1
Liability for incurred claims and reinsurance asset for incurred claims,
including risk adjustment and the confidence level used note 2.4
—Compliance and remediation provision note 2.7
—Intangible assets note 6.2
—Lease liabilities (incremental borrowing rate) note 6.3a(ii)
—Deferred tax note 7.3
1.4 Changes in accounting policies and disclosures
a. New standards and interpretations
Tower adopted NZ IFRS 17 Insurance Contracts (NZ IFRS 17) from 1 October 2023. 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 not adopted any other standard, amendment or interpretation with a material effect
on Tower.
Accounting policy change
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, it is similar to the previous measurement model used for general insurance under NZ IFRS 4.
NZ IFRS 17 introduces several new concepts, including:
— Measuring insurance contract assets and liabilities separately from reinsurance contract assets
and liabilities.
— 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).
— LRC, 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 occurred 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.
— 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.
Tower’s accounting policy for recognition, classification, measurement, and derecognition of insurance and
reinsurance contracts is explained in note 2.1.
Impact of accounting policy change
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 year ended 30
September 2023 has been restated.
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 insurance contract liabilities and reinsurance
contract assets.
ANNUAL REPORT 202460
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Impact of accounting policy change (continued)
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.
CONTRIBUTED
EQUITY
$000
ACCUMULATED
LOSSES
$000
OTHER
RESERVES
$000
TOTAL
EQUITY
$000
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 total equity is driven by the following:
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.
2
The impact of discounting certain liabilities for incurred claims and reinsurance assets for incurred claims under NZ IFRS 17 which
Tower opted not to discount 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.
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. NZ IFRS 18 Presentation
and Disclosure in Financial Statements (NZ IFRS 18) will replace NZ IAS 1 Presentation of Financial Statements
and may have a material impact on Tower's disclosures. NZ IFRS 18 has been issued but is not effective for
Tower until 1 October 2027. Tower has not yet completed an assessment of the impact of adopting NZ IFRS 18.

1.4 New standards and interpretations (continued)1.5 Segmental reporting
a. Operating segments
Information is provided by operating segment to assist an understanding of the Group's performance.
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 8.4.

b. Financial performance of continuing operations
NEW ZEALAND
$000
PACIFIC
ISLANDS
$000
OTHER
$000
TOTAL
$000
Year Ended 30 September 2024
Insurance revenue513,566 42,252 – 555,818
Insurance service expense(356,693)(24,553)(362)(381,608)
Net (expense)/income from reinsurance
contracts held
(86,029)(5,398)63 (91,364)
Insurance service result70,844 12,301 (299)82,846
Net investment income20,666 884 – 21,550
Net insurance finance expense(2,572) – – (2,572)
Net insurance and investment result88,938 13,185 (299)101,824
Other income3,873 191 – 4,064
Other operating expenses(2,307)(41) – (2,348)
Finance costs(722)(160) – (882)
Profit/(loss) before taxation from
continuing operations89,782 13,175 (299)102,658
Tax (expense)/benefit(25,716)(6,101)43 (31,774)
Profit/(loss) after taxation from
continuing operations64,066 7,074 (256)70,884
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b. Financial performance of continuing operations (continued)
NEW ZEALAND
$000
PACIFIC ISLANDS
$000
OTHER
$000
TOTAL
$000
Year Ended 30 September 2023 (Restated)
Insurance revenue429,706 42,905 - 472,611
Insurance service expense(586,730)(18,146)25 (604,851)
Net income/(expense) from reinsurance
contracts held
140,371 (16,250)239 124,360
Insurance service result(16,653)8,509 264 (7,880)
Net investment income13,622 707 - 14,329
Net insurance finance expense(1,348) - - (1,348)
Net insurance and investment result(4,379)9,216 264 5,101
Other income4,338 761 628 5,727
Other operating expenses(2,106)(39) - (2,145)
Finance costs(734)(186) - (920)
(Loss)/profit before taxation from continuing
operations(2,881)9,752 892 7,763
Tax expense(2,437)(2,567)(172)(5,176)
(Loss)/profit after taxation from continuing
operations(5,318)7,185 720 2,587
c. Financial position of continuing operations
NEW ZEALAND
$000
PACIFIC ISLANDS
$000
OTHER
$000
TOTAL
$000
Additions to non-current assets
30 September 2024
18,702 2,175 – 20,877
Additions to non-current assets
30 September 2023
24,081 6,319 – 30,400
Total assets 30 September 2024589,793 56,580 (11,225)635,148
Total assets 30 September 2023
(restated)
618,213 50,975 (25,349)643,839
Total liabilities 30 September 2024250,337 25,478 (823)274,992
Total liabilities 30 September 2023
(restated)333,896 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.
Definition
An operating segment is a group of assets and operations engaged in providing products or services
that are subject to risks and returns that are different to those of other operating segments. 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.
1.5 Segmental reporting (continued)
ANNUAL REPORT 202462
Notes to the consolidated financial statements (continued)
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2 Insurance and reinsurance contracts
This section provides information on Tower's underwriting activities.
Tower collects premiums from customers in exchange for providing insurance coverage. These
premiums are recognised as insurance revenue when they are earned by Tower, reducing the liability for
remaining coverage 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 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.
2.1 Insurance and reinsurance contracts accounting policies
a. Recognition
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.
b. Measurement Model - Insurance Contracts
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 does not issue any insurance contracts that provide an investment return, or have direct participating
contracts, therefore the VFA does not apply to Tower.
c. Level of aggregation
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.
d. Onerous contracts
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.
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.
ANNUAL REPORT 202463
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d. Onerous contracts (continued)
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.
e. Liability for remaining coverage
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.
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.
f. Insurance acquisition cash flows
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 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. All IACF are allocated to groups of insurance contracts.
g. Liability for incurred claims
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 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.
h. Insurance modification and derecognition
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.
i. Measurement Model - Reinsurance Contracts
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.
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.
j. Reinsurance contracts - level of aggregation
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.
2.1 Insurance and reinsurance contracts accounting policies (continued)
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k. Reinsurance contract assets - recognition and measurement
A 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.
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.
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.
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.
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 arrangements 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.
l. Discount rates
Tower discounts 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.
2.2 Insurance service expense and other operating expenses
Composition
2024
$000
2023
$000
Claims expenses 245,048 489,021
(Reversals)/losses on onerous insurance contracts(223)607
Commission expenses amortised 13,022 12,342
Management expenses:
People costs92,671 84,408
People costs capitalised during the year(10,824)(9,562)
Technology17,189 16,372
Amortisation19,269 17,327
Depreciation5,962 5,836
External fees20,128 10,687
Marketing14,792 13,128
Communications3,852 3,361
Miscellaneous3,605 3,814
Movement in non-commission deferred insurance acquisition
cash flows
(6,011)(4,540)
Claims related management expenses reclassified to claims
expense
(35,756)(36,208)
Service fees charged to discontinued operations(1,116)(1,742)
Total insurance service expense381,608 604,851
Other operating expenses2,348 2,145
Total insurance service expense and other
operating expenses383,956 606,996
2.1 Insurance and reinsurance contracts accounting policies (continued)
ANNUAL REPORT 202465
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2.3 Net insurance finance expense
2024
$000
2023
$000
Interest accreted(5,314)(1,804)
Effect of changes in interest rates and other financial
assumptions
(278)294
Finance expense from insurance contracts issued(5,592)(1,510)
Interest accreted2,877 212
Effect of changes in interest rates and other financial
assumptions
143 (50)
Finance income from reinsurance contracts held3,020 162
Net insurance finance expense(2,572)(1,348)
2.4 Insurance and reinsurance assets and liabilities
a. Insurance and reinsurance contracts
2024
$000
ASSETSLIABILITIES
CURRENT
PORTION
NON-
CURRENT
PORTIONTOTAL
Liability for remaining coverage – 42,042 42,042 – 42,042
Liability for incurred claims – 135,527 110,169 25,358 135,527
Total insurance contracts issued – 177,569 152,211 25,358 177,569
Total reinsurance contracts held35,503 – 28,854 6,649 35,503
2023
$000
ASSETSLIABILITIES
CURRENT
PORTION
NON-
CURRENT
PORTIONTOTAL
Liability for remaining coverage – 44,614 44,614 – 44,614
Liability for incurred claims – 241,195 198,860 42,335 241,195
Total insurance contracts issued – 285,809 243,474 42,335 285,809
Total reinsurance contracts held147,236 – 125,567 21,669 147,236
ANNUAL REPORT 202466
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b. Reconciliation of insurance assets and liabilities
2024
$000
LIABILITIES FOR REMAINING COVERAGELIABILITIES FOR INCURRED CLAIMSTOTAL
EXCLUDING LOSS
COMPONENTLOSS COMPONENT
ESTIMATES OF THE
PRESENT VALUE
OF FUTURE CASH
FLOWSRISK ADJUSTMENT
Opening insurance contract liabilities43,994 620 223,565 17,630 285,809
Insurance revenue(555,818) - - - (555,818)
Insurance service expense:
Incurred claims and other insurance service expenses* - - 314,130 3,666 317,796
Amortisation of IACF62,835 - - - 62,835
Changes relating to past service - - (15,950)(8,117)(24,067)
Reversals on onerous contracts - (223) - - (223)
Finance expense from insurance contracts issued - - 5,592 - 5,592
Effect of movements in exchange rates(272)(13)(348) - (633)
Amounts included in statement of comprehensive income(493,255)(236)303,424 (4,451)(194,518)
Cash flows:
Premiums received559,383 - - - 559,383
Claims and other insurance service expenses paid - - (404,641) - (404,641)
Insurance acquisition cash flows(68,119) - - - (68,119)
Amounts included in statement of cash flow491,264 - (404,641) - 86,623
Pre-recognition cash flows derecognised and other changes(345) - - - (345)
Insurance contract liabilities at 30 September 202441,658 384 122,348 13,179 177,569
* Excludes $25m of insurance service expenses for depreciation and amortisation, which do not form part of insurance contract liabilities on the balance sheet.
Certain cash flows presented above may be on a deemed basis in respect of movements through the insurance contract liabilities, and certain amounts may be recognised in other receivable, payable and provision balances,
so they may differ from the actual cash flow amounts reported in the consolidated statement of cash flows.
2.4 Insurance and reinsurance assets and liabilities (continued)
ANNUAL REPORT 202467
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

b. Reconciliation of insurance assets and liabilities (continued)
2023
$000
LIABILITIES FOR REMAINING COVERAGELIABILITIES FOR INCURRED CLAIMSTOTAL
EXCLUDING LOSS
COMPONENTLOSS COMPONENT
ESTIMATES OF THE
PRESENT VALUE
OF FUTURE CASH
FLOWSRISK ADJUSTMENT
Opening insurance contract liabilities43,343- 105,32116,247164,911
Insurance revenue(472,611)- - - (472,611)
Insurance service expense:
Incurred claims and other insurance service expenses*- - 516,6778,064524,741
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 rates26513444- 722
Amounts included in statement of comprehensive income(418,346)620527,5191,518111,311
Cash flows:
Premiums received482,701- - - 482,701
Claims and other insurance service expenses paid- - (408,546)- (408,546)
Insurance acquisition cash flows(58,441)- - - (58,441)
Amounts included in statement of cash flow424,260- (408,546)- 15,714
Pre-recognition cash flows derecognised and other changes(5,263)- (728)(136)(6,127)
Insurance contract liabilities at 30 September 202443,994620223,56617,629285,809
* Excludes $23m of insurance service expenses for depreciation and amortisation, which do not form part of insurance contract liabilities on the balance sheet.
Certain cash flows presented above may be on a deemed basis in respect of movements through the insurance contract liabilities, and certain amounts may be recognised in other receivable, payable and provision balances,
so they may differ from the actual cash flow amounts reported in the consolidated statement of cash flows. Pre-recognition cash flows derecognised and other changes also includes the derecognition of liabilities that moved to
liabilities held for sale during the period.
2.4 Insurance and reinsurance assets and liabilities (continued)
ANNUAL REPORT 202468
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

c. Reconciliation of reinsurance assets and liabilities
2024
$000
ASSETS FOR REMAINING
COVERAGE
ASSET FOR
INCURRED CLAIMSTOTAL
EXCLUDING
LOSS RECOVERY
COMPONENT
LOSS RECOVERY
COMPONENT
ESTIMATES OF THE
PRESENT VALUE
OF FUTURE CASH
FLOWSRISK ADJUSTMENT
Year ended 30 September 2024
Opening reinsurance contract assets(4,229)– 146,3275,138147,236
Reinsurance premiums(79,587)– – – (79,587)
Amounts recoverable from reinsurers:
Amounts recoverable for incurred claims– – 6,5276427,169
Changes relating to past service– – (15,812)(3,134)(18,946)
Finance income from reinsurance contracts held– – 3,020– 3,020
Effect of movements in exchange rates101– 25– 126
Amounts included in statement of comprehensive income(79,486) – (6,240)(2,492)(88,218)
Cash flows:
Premiums paid net of ceding commissions72,025– – – 72,025
Reinsurance recoveries (net of profit share commissions)– – (95,540)– (95,540)
Amounts included in statement of cash flow72,025– (95,540)– (23,515)
Reinsurance contract assets at 30 September 2024(11,690) – 44,547 2,646 35,503
Certain cash flows presented above may be on a deemed basis in respect of movements through the reinsurance contract assets, and certain amounts may be recognised in other receivable, and payable balances, so they may
differ from the actual cash flow amounts reported in the consolidated statement of cash flows.
2.4 Insurance and reinsurance assets and liabilities (continued)
ANNUAL REPORT 202469
Notes to the consolidated financial statements (continued)
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c. Reconciliation of reinsurance assets and liabilities (continued)
2023
$000
ASSETS FOR REMAINING
COVERAGE
ASSET FOR
INCURRED CLAIMSTOTAL
EXCLUDING
LOSS RECOVERY
COMPONENT
LOSS RECOVERY
COMPONENT
ESTIMATES OF THE
PRESENT VALUE
OF FUTURE CASH
FLOWSRISK ADJUSTMENT
Year ended 30 September 2023
Opening reinsurance contract assets4,917- 21,80519626,918
Reinsurance premiums(79,746)- - - (79,746)
Amounts recoverable from reinsurers:
Amounts recoverable for incurred claims- - 201,3565,815207,171
Changes relating to past service- - (2,198)(866)(3,064)
Finance income from reinsurance contracts held- - 162- 162
Effect of movements in exchange rates(139)- (66)- (205)
Amounts included in statement of comprehensive income(79,885)- 199,2544,949124,318
Cash flows:
Premiums paid net of ceding commissions72,080- - - 72,080
Reinsurance recoveries (net of profit share commissions)- - (74,693)- (74,693)
Amounts included in statement of cash flow72,080- (74,693)- (2,613)
Assets reclassified to assets held for sale(1,341)- (39)(7)(1,387)
Reinsurance contract assets at 30 September 2023(4,229)- 146,3275,138147,236
Certain cash flows presented above may be on a deemed basis in respect of movements through the reinsurance contract assets, and certain amounts may be recognised in other receivable, and payable balances, so they may
differ from the actual cash flow amounts reported in the consolidated statement of cash flows.
2.4 Insurance and reinsurance assets and liabilities (continued)
ANNUAL REPORT 202470
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

d. Development of claims
The following table shows how estimates of cumulative claims have developed over time on a net of reinsurance basis.
Tower considers the probability and magnitude of future experience being more adverse than assumed. This uncertainty is reflected in the risk adjustment. In general, the uncertainty associated with the ultimate cost of settling
claims is greatest when the claim is at an early stage of development. As claims develop, the ultimate cost of claims becomes more certain.
ULTIMATE CLAIMS COST ESTIMATE
PRIOR
$000
2020
$000
2021
$000
2022
$000
2023
$000
2024
$000
TOTAL
$000
At end of incident year155,506 181,849 197,830 262,858 230,703
One year later152,143 180,386 204,450 253,812 -
Two years later150,830 181,928 206,682 - -
Three years later150,684 181,609 - - -
Four years later151,748 - - - -
Ultimate claims cost151,748 181,609 206,682 253,812 230,703
Cumulative payments(151,629)(179,513)(205,232)(245,729)(161,805)
Net estimates of the undiscounted amount of the claims11,112 119 2,096 1,450 8,083 68,898 91,758
Third party recoveries outstanding(8,372)
Claims handling expense8,538
Effect from discounting(1,601)
Effect from risk adjustment10,533
Reinsurance outstanding on paid claims(12,522)
Total net liabilities for incurred claims88,334
2.4 Insurance and reinsurance assets and liabilities (continued)
ANNUAL REPORT 202471
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

d. Development of claims (continued)
NOTE
ESTIMATES OF
THE PRESENT
VALUE OF FUTURE
CASH FLOWS
$000
RISK
ADJUSTMENT
$000
TOTAL
$000
Insurance contract liabilities2.4b122,348 13,179 135,527
Total gross liabilities for incurred claims122,348 13,179 135,527
Reinsurance contract assets2.4c(44,547)(2,646)(47,193)
Total net liabilities for incurred claims77,801 10,533 88,334
Tower has limited exposure to long-tail classes of business. Long-tail classes have increased uncertainty of the
ultimate cost of claims due to the additional period of time to settlement.
Prior year numbers have been restated at current year exchange rates to reflect the underlying development
of claims.
e. Liability for incurred claims
Future cash outflows are estimated using data specific to each portfolio, relevant industry data and general
economic data. The estimation process factors in the risks to which the business is exposed to at a point in
time, claim frequency and severity, historical trends in the development of claims as well as legal, social and
economic factors that may affect Tower.
Assumption
20242023
Expected future claims development64.0%45.5%
Claims handling expense ratio7.9%5.6%
Risk adjustment10.7%7.8%
Discount rate4.4%5.7%
Future Canterbury Earthquakes overcap property claims$5.2m$3.5m
Expected future claims development proportion
This is the proportion of additional claims cost that is expected to be recognised in the future for claims that
have already been reported. The assumption is expressed as a proportion of current case estimates for open
claims and the resulting amount is recognised in the balance sheet as a liability for incurred claims. The ratio
in 2024 has increased due to the settlement of the bulk of the claims from the 2023 storm events and the
corresponding change in the mix of outstanding claims at September 2024 compared to the previous year.
2.4 Insurance and reinsurance assets and liabilities (continued)
Claims handling expense ratio
This reflects the expected cost to administer future claims. The ratio is calculated based on historical
experience of claims handling expenses. The increase in 2024 is due to the reclassification of certain external
assessment costs as claims handling expenses.
Discount rate
The discount rates determined for 30 September 2024 were between 3.8 and 5% (2023: 5.3 and 5.8%).
The table below summarises the yield curves used to discount Tower's liability for incurred claims.
As at 30 September 2024
%1 year2 years3 years4 years5+ years
New Zealand4.2%3.7%3.6%3.7%3.8%
As at 30 September 2022
%1 year2 years3 years4 years5+ years
New Zealand5.8%5.5%5.4%5.3%5.3%
Risk adjustment (RA)
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.
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.
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 confidence level of 72.5% for New Zealand (excluding Canterbury earthquakes), 75% for Pacific
and 90% for Canterbury earthquakes. A diversification benefit is included to reflect the diversification of risk
across countries, reflecting the compensation that the entity requires.
ANNUAL REPORT 202472
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

f. Sensitivity Analysis
The impact on profit or loss before tax, and the impact on equity for any reasonable changes at period end
have been summarised below. Each change has been calculated in isolation from the other variables.
Liability for incurred claims
IMPACT ON PROFIT OR
LOSS GROSS OF
REINSURANCE
IMPACT ON PROFIT OR
LOSS NET OF
REINSURANCE
MOVEMENT
IN
ASSUMPTION
2024
$000
2023
$000
2024
$000
2023
$000
Expected future claims development + 10%(4,805)(7,177)(3,434)(3,251)
- 10%4,805 7,177 3,434 3,251
Claims handling expense ratio + 10%(970)(1,243)(854)(677)
- 10%970 1,243 854 677
Risk adjustment + 10%(1,318)(1,414)(1,053)(900)
- 10%1,318 1,414 1,053 900
Discount rate + 1.75%1,128 1,939 806 905
- 1.75%(1,128)(2,009)(806)(937)
Number of future Canterbury + 50%(4,100)(2,800)(4,100)(2,800)
Earthquake overcap claims - 50%4,100 2,800 4,100 2,800

2.4 Insurance and reinsurance assets and liabilities (continued)2.5 Receivables
Composition
2024
$000
2023
$000
Prepayments13,969 5,417
Finance lease receivables – 344
Other receivables5,830 11,036
Receivables19,799 16,797
Receivable within 12 months16,16816,797
Receivable in greater than 12 months3,631 –
Receivables19,799 16,797
Recognition and measurement
Receivables (inclusive of GST) are recognised at fair value and are subsequently measured at amortised
cost, less any expected credit loss (ECL). Tower applies the simplified approach in calculating ECL.
The ECL calculation is based on a provision matrix which is based on historical credit loss experience,
adjusted for forward looking factors specific to the receivables and the economic environment.
ANNUAL REPORT 202473
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

2.6 Payables
Composition
2024
$000
2023
$000
Trade payables 16,747 10,833
Pre-coverage liability 2,035 1,930
GST payable 3,497 (1,511)
Unsettled investment purchases 5,400 -
Other 4,608 3,899
Payable to discontinued operations - 3,227
Payables 32,287 18,378
Payable within 12 months 32,287 18,378
Payable in greater than 12 months - -
Payables 32,287 18,378
Recognition and measurement
Payables are recognised where goods or services that have been received or supplied and have been
invoiced or formally agreed with the supplier. Payables are stated at the fair value of the consideration to
be paid in the future inclusive of GST. GST payable represents the net amount payable to the respective
tax authorities.
Tower receives some premiums in advance of the initial recognition date of an insurance contract. For
these premiums received in advance Tower recognises a separate pre-coverage liability (PCL). When the
coverage period for the contract starts, the PCL is reduced and the value of the premiums is transferred
to the liability for remaining coverage.
2.7 Provisions
Composition
2024
$000
2023
$000
Annual leave and other employee benefits 12,771 5,737
Compliance and remediation 9,188 7,086
Provisions 21,959 12,823
Payable within 12 months 20,926 11,762
Payable in greater than 12 months 1,033 1,061
Provisions 21,959 12,823
The annual leave and other employee benefits provision has increased by $14.2m during the period, offset by
payments to employees of $7.2m.
A compliance and remediation provision has been recognised and is reassessed at each reporting period.
A range of possible outcomes is considered, and the re-assessment has resulted in an additional $7.5m
being recognised in the current period, which has been offset by payments made during the period. The
resulting provision allows for amounts to be repaid to customers and costs associated with any potential
regulatory action.
The Financial Markets Authority (FMA) is seeking a declaration from the court that Tower contravened the
Financial Markets Conduct Act (2013) and that a pecuniary penalty is paid to the Crown. Any eventual penalty
to be determined by the High Court may be in excess or lower than the provision recognised in these financial
statements. The timing of any penalty payable by Tower is also uncertain.
Recognition and measurement
Tower recognises a provision when it has a present obligation as a result of a past event and it is more
likely than not that an outflow of resources will be required to settle the obligation. Tower's provision
represents the best estimate of the expenditure required to settle the present obligation at the end of
the reporting period.
ANNUAL REPORT 202474
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

3 Investments and other income
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 for investment and credit risk and therefore the majority of its investments are in
investment grade supranational and government bonds, and term deposits.
3.1 Investment income
2024
$000
2023
$000
Interest income17,767 12,871
Net realised gain1,626 1,173
Net unrealised gain2,407 583
Investment income 21,800 14,627
Recognition and measurement
Tower’s investment income is primarily made up of realised and unrealised interest income on fixed
interest investments and fair value gains or losses on its investment assets. Both are recognised in the
period that they are earned through profit or loss.
3.2 Investments
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:
Level 1 Fair value is calculated using quoted prices in active markets. Tower currently does not have any
Level 1 investments.
Level 2 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.
Level 3 Investment valuation is based on unobservable market data. Tower currently does not have any
Level 3 investments..
LEVEL 1
$000
LEVEL 2
$000
LEVEL 3
$000
TOTAL
$000
As at 30 September 2024
Fixed interest investments– 367,472 – 367,472
Property investment– 34 – 34
Investments– 367,506 – 367,506
As at 30 September 2023
Fixed interest investments – 258,764 – 258,764
Property investment – 34 – 34
Investments – 258,798 – 258,798
There have been no transfers between levels of the fair value hierarchy during the current period (2023: nil).

ANNUAL REPORT 202475
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

Recognition and measurement
Tower’s investment assets are designated at fair value through profit or loss. Investment assets are
initially recognised at fair value and are remeasured to fair value through profit or loss at each reporting
date. Tower's approach to measuring the fair value of these assets is covered above.
Purchases and sales of investments are recognised at the date which Tower commits to buy or sell
the assets (i.e. trade date). Investments are derecognised when the rights to receive future cash flows
from the assets have expired, or have been transferred, and substantially all the risks and rewards of
ownership have transferred.
3.3 Other income
2024
$000
2023
$000
Agency fees*1,705 3,574
Gain on disposal of property, plant and equipment30 1,243
Other2,329 910
Other income 4,064 5,727
* Agency fees include fees received for managing claims on behalf of the Natural Hazards Commission.
4 Risk Management
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.
4.1 Risk management overview
Tower’s approach to achieving effective risk management is to embed a risk-aware culture where everyone
across the organisation (including contractors and third parties) is responsible for managing risk.
Tower’s Board expresses its appetite for risk in a Risk Appetite Statement, which:
(i) Gives clear concise guidance to management of parameters for risk taking.
(ii) Embeds risk management into strategic and decision-making processes.
(iii) Facilitates risk to be managed at all levels of the organisation through a structured process to identify
risk, and the allocation of clear, personal responsibility for management of identified risks by assigned
risk owners.
The Board then approves and adopts: (i) the Risk Management Framework (RMF) which is the central document
that explains how Tower effectively manages risk within the business; and (ii) the Reinsurance Management
Strategy (ReMS) which describes the systems, structures, and processes which collectively ensures Tower's
reinsurance arrangements and operations are prudently managed. These documents are approved annually
by the Board.
The Board has delegated its responsibility to the Risk Committee to provide oversight of risk management
practices and provide advice to the Board and management when required. In addition, the Risk Committee
also monitors the effectiveness of Tower’s risk management function which is overseen by the Chief Risk Officer
(CRO). The CRO provides regular reports to the Risk Committee on the operation of the RMF.
Tower has embedded the RMF with clear accountabilities and risk ownership to ensure that Tower identifies,
manages, mitigates and reports on all key risks and controls through the three lines of defence model.
(i) First line: Operational management has ownership, responsibility and accountability for directly identifying,
assessing, controlling and mitigating key risks which prevent them from achieving business objectives.
(ii) Second Line: Tower’s Risk, Advice and Assurance Function is responsible for developing and implementing
effective risk, compliance and conduct management processes; providing advisory support to the first
line of defence and constructively challenging operational management and risk and obligation owners to
ensure positive assurance.
3.2 Investments (continued)
ANNUAL REPORT 202476
Notes to the consolidated financial statements (continued)
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(iii) Third line: Internal Audit is responsible and accountable for providing an independent and objective view
of the adequacy and effectiveness of the Group’s risk management, governance and internal control
framework. Internal audit, along with other groups such as external audit, report independently to the
Board and/or the Audit Committee.
The RMF is supported by a suite of policies that address the risks and compliance obligations covered in
this section.
4.2 Strategic risk
Strategic risk is the risk that internal or external factors compromise Tower’s ability to execute its strategy or
achieve its strategic objectives. Strategic risk is managed through:
(i) Monitoring and managing performance against Board-approved plan and targets.
(ii) Board leading an annual strategy and planning process which considers our performance, competitor
positioning and strategic opportunities.
(iii) Identifying and managing emerging risks using established governance processes and forums.
4.3 Insurance risk
Insurance risk is the risk that for any class of risk insured, the present value of actual claims payable will exceed
the present value of actual premium revenues generated (net of reinsurance). This risk is inherent in Tower's
operations and arises and manifests through underwriting, insurance concentration and reserving risk.
a. Underwriting risk
Underwriting risk refers to the risk that claims arising are higher (or lower) than assumed in pricing due to bad
experience including catastrophes, weakness in controls over underwriting or portfolio management, or claims
management issues. Tower has established the following key controls to mitigate this risk:
(i) Use of comprehensive management information systems and actuarial models to price products based
on historical claims frequencies and claims severity averages, adjusted for inflation and modelled
catastrophes, trended forward to recognise anticipated changes in claims patterns after making allowance
for other costs incurred by the Group.
(ii) Passing elements of insurance risk to reinsurers. Tower's Board determines a maximum level of risk to be
retained by the Group as a whole. Tower's reinsurance programme is structured to adequately protect the
solvency and capital position of the insurance business. The adequacy of reinsurance cover is modelled by
assessing Tower's exposure under a range of scenarios.

The plausible scenario that has the most financial significance for Tower is a major earthquake. Each year,
as part of setting the coming year's reinsurance cover, comprehensive modelling of the event probability
and amount of the Group's exposure is undertaken.
(iii) Underwriting limits are in place to enforce appropriate risk selection criteria and pricing with specific
underwriting authorities that set clear parameters for the business acceptance.
Tower has not experienced significant changes in exposure to underwriting risk during the period, and no
significant changes to underwriting risk management have been implemented in the current period.
Refer to note 2.4a for exposure of underwriting risk at reporting date. Liability for incurred claims (LIC) is the
key component of insurance liability sensitive to possible changes in underwriting risk, and we have performed
sensitivity analysis over all variables that could reasonably change and impact the measurement of LIC in
note 2.4f.
b. Concentration risk
Concentration risk refers to the risk of underwriting a number of like risks, where the same or similar loss events
have the potential to produce claims from many of Tower's customers at the same time. Tower is particularly
subject to concentration risks in the following variety of forms:
(i) Geographic concentration risk – Tower purchases a catastrophe reinsurance programme to protect against
a modelled 1-in-1000 years whole of portfolio catastrophe loss.
(ii) Product concentration risk - Tower's business is weighted towards the NZ general insurance market where its
risks are concentrated in house insurance (Home & Contents) and motor insurance. Tower limits its exposure
through proportional reinsurance arrangements, where Tower transfers its exposure on any single insured
asset (for example, a house) above a set amount, in exchange for ceding portion of the premium to reinsurers.
Tower has not experienced significant changes in exposure to concentration risk during the period, and no
significant changes to concentration risk management have been implemented in the current period.
The following table illustrates the diversity of Tower’s operations.
4.1 Risk management overview (continued)
ANNUAL REPORT 202477
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

% of Insurance Revenue
20242023
NZPACIFIC*TOTALNZPACIFIC*TOTAL
Home38%2%40%37%3%40%
Contents14%0%14%14%0%14%
Motor38%2%40%37%3%40%
Other3%3%6%3%3%6%
Total93%7%100%91%9%100%
* The Pacific operating segment excludes the disposal groups.
c. Reserving risk
Reserving risk is managed through the actuarial valuation of insurance liabilities and monitoring of the
probability of adequacy booked reserves. The valuation of the liability for incurred claims is performed by
qualified and experienced actuaries. The liability for incurred claims is subject to a comprehensive review at
least annually.
Tower has not experienced significant changes in exposure to reserving risk, and no significant changes to
reserving risk management have been implemented in the current period.
Refer to note 2.4a for exposure of reserving risk at reporting date. Liability for incurred claims (LIC) is the key
component of insurance liability sensitive to possible changes in reserving risk, and we have performed
sensitivity analysis over all variables that could reasonably change and impact the measurement of LIC in
note 2.4f.
4.3 Insurance risk (continued)4.4 Credit risk
Credit risk is the risk of loss that arises when a counterparty fails to meet their financial obligations to Tower
in accordance with the agreed terms. Tower's exposure to credit risk primarily results from transactions with
security issuers, reinsurers and policyholders and is set out below.
a. Investment and treasury
Tower manages its investment and treasury credit risks in line with limits set by the Board:
(i) New Zealand cash deposits that are internally managed are limited to banks with a minimum Standard &
Poor’s (S&P) AA- credit rating.
(ii) Cash deposits and investments that are managed by external investment managers are limited to
counterparties with a minimum S&P A- credit rating.
(iii) Tower holds deposits and invests in Pacific regional investment markets through its Pacific Island
operations to comply with local statutory requirements and in accordance with Tower investment policies.
These deposits and investments generally have low credit ratings representing the majority of the value
included in the 'Below BBB' and 'not rated' categories in the table below. This includes deposits and
investments with Australian bank subsidiaries that comprise 33% (2023: 45%) of the 'not rated' category.
CASH AND CASH EQUIVALENTSFIXED INTEREST INVESTMENTSTOTAL
2024
$000
2023
$000
2024
$000
2023
$000
2024
$000
2023
$000
AAA–– 121,497 104,646 121,497 104,646
AA62,106 47,992 188,655 113,971 250,761 161,963
A–– 55,240 38,137 55,240 38,137
Below BBB 10,466 11,917 1,948 1,322 12,414 13,239
Not rated2,818 4,100 166 722 2,984 4,822
Total 75,390 64,009 367,506 258,798 442,896 322,807
ANNUAL REPORT 202478
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

b. Reinsurance
Tower manages its reinsurance programme in line with the ReMS. Tower seeks to manage the quantum and
volatility of insurance risk in order to reduce exposure and overall cost.
Tower's policy is to only deal with reinsurers with a credit rating of S&P A- or better unless local statutory
requirements dictate otherwise. Additional requirements of the policy are for no individual reinsurer to have
more than 25% share of the overall programme and Tower is prohibited from offering inwards reinsurance to
external entities.
Tower has not experienced significant changes in exposure to reinsurance risk during the period, and no
significant changes to reinsurance risk management have been implemented in the current period.
REINSURANCE AIC
2024
$000
2023
$000
AA 34,592 80,489
A 11,768 70,862
BBB– 9
Below BBB 70 81
Not rated 763 24
Total 47,193 151,465
4.4 Credit risk (continued)
Tower's receivables for insurance contracts primarily relates to policies which are paid on either a fortnightly or
monthly basis. Payment default or policy cancellation - subject to the terms of the policyholder's contract - will
result in the termination of the insurance contract eliminating both the credit risk and the insurance risk.
The following table provides details on Tower's maximum exposure to credit risk for insurance contracts and
other receivables:
PAST DUE
NOT DUE*
$000
1 MONTH
$000
1 TO 2
MONTHS
$000
2 TO 3
MONTHS
$000
OVER 3
MONTHS
$000
TOTAL
$000
As at 30 September 2024
Net premiums receivable 270,422 4,559 1,665 683 257 277,586
Other receivables 5,830 –––– 5,830
As at 30 September 2023
Net premium receivable 237,736 4,375 270 844 50 243,275
Other receivables 11,036 – – – – 11,036
* This includes premiums that are less than 30 days outstanding (which are owed but not past due) of $5.2m (2023: $4.3m).
The remaining balance is related to the provision of future insurance services to customers.
c. Insurance and other credit risk
ANNUAL REPORT 202479
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

4.5 Market risk
Market risk is the risk of adverse impacts on investment earnings resulting from changes in market factors.
Tower's market risk is predominately as a result of changes in the value of the New Zealand dollar (currency
risk) and interest rate movements. Tower's approach to managing market risk is underpinned by its Treasury
Policy as approved by the Board.
a. Currency risk
Tower's currency exposure arises from the translation of foreign operations into Tower's functional currency
(currency translation risk) or due to transactions denominated in a currency other than the functional currency
of a controlled entity (operational currency risk). The currencies giving rise to this risk are primarily the US dollar,
Fijian dollar and Papua New Guinea (PNG) Kina.
Tower's principal currency risk is currency translation (where movement impacts equity). Tower generally elects
not to hedge this risk as it is difficult given the size and nature of the currency markets in the Pacific. Tower
seeks to minimise its net exposure to foreign operational risk by actively seeking to return surplus cash and
capital to the parent company.
Operational currency risk impacts profit and generally arises from:
(i) Procurement of goods and services denominated in foreign currencies. Tower may enter into hedges for
future transactions, using authorised instruments, provided that the timing and amount of those future
transactions can be estimated with a reasonable degree of certainty.
(ii) Investment assets managed by the external investment manager that are denominated in foreign
currencies. Tower's Board set limits for the management of currency risk based on prudent asset
management practice. Regular reviews are conducted to ensure that these limits are adhered to.
Tower has not experienced significant changes in exposure to currency risk during the period, and no
significant changes to currency risk management have been implemented in the current period.
The following table demonstrates the impact of the New Zealand dollar weakening or strengthening against
the most significant currencies for which Tower has foreign exchange exposure before tax, holding all other
variables constant.
DIRECT IMPACT ON
EQUITY THROUGH CURRENCY
TRANSLATION RESERVEIMPACT ON PROFIT OR (LOSS)
2024
$000
2023
$000
2024
$000
2023
$000
New Zealand Dollar - USD
Currency strengthens by 10%(619)(1,025)905 1,378
Currency weakens by 10%7561,253 (1,106)(1,684)
New Zealand Dollar - Fijian Dollar
Currency strengthens by 10%(1,182)(887)(8)(74)
Currency weakens by 10%1,4451,084 9 91
New Zealand Dollar - PNG Kina
Currency strengthens by 10%––(674)(805)
Currency weakens by 10%– – 822 984
The impact on profit or loss for New Zealand Dollar - USD in the 2023 comparative has been updated for
consistency with 2024 sensitivity.
ANNUAL REPORT 202480
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

b. Interest rate risk
Tower is exposed to interest rate risk through its holdings in interest-bearing assets. Interest-bearing assets
with a floating interest rate expose Tower to cash flow interest rate risk, whereas fixed interest investments
expose Tower to fair value interest rate risk.
Tower's interest rate risk primarily arises from fluctuations in the valuation of fixed-interest investments
recognised at fair value and from the underwriting of general insurance contracts, which have interest rate
exposure due to the use of discount rates in calculating the value of insurance liabilities.
Fixed-interest investments are measured at fair value through profit or loss. Movements in interest rates impact
the fair value of interest-bearing financial assets and therefore impact profit or loss (there is no direct impact
on equity). The impact of a 1% increase or decrease in interest rates on fixed interest investments, after tax, is
shown below (holding everything else constant).
IMPACT ON PROFIT OR (LOSS)
2024
$000
2023
$000
Interest rates increase by 1% (1,287)(1,652)
Interest rates decrease by 1%1,2671,726
Tower manages its interest rate risk through Board-approved investment management guidelines that give regard
to policyholder expectations and risks, and to target surplus for solvency as advised by the Appointed Actuary.
Tower has not experienced significant changes in exposure to interest rate risk during the period, and no significant
changes to interest rate risk management have been implemented in the current period.

4.5 Market risk (continued)4.6 Liquidity risk
Liquidity risk arises where liabilities cannot be met as they fall due as a result of insufficient funds and/or
illiquid asset portfolios. Tower mitigates this risk through maintaining sufficient liquid assets to ensure that it can
meet all obligations on a timely basis.
Tower is primarily exposed to liquidity risk through its obligations to make payment for claims of unknown
amounts on unknown dates. Fixed-interest investments can generally be readily sold or exchanged for cash to
settle claims and are managed in accordance with the policy of broadly matching the overall maturity profile to
the estimated pattern of claim payments.
Tower has not experienced significant changes in exposure to liquidity risk during the period, and no significant
changes to liquidity risk management have been implemented in the current period.
The following table presents the estimated amount and timing of the remaining contractual discounted cash
flows arising from investment assets and insurance liabilities.
LIABILITY FOR INCURRED CLAIMSCASH AND INVESTMENTS
2024
$000
2023
$000
2024
$000
2023
$000
Floating interest rate (at call) - - 75,446 89,909
Within 3 months 62,412 105,702 124,629 28,682
3 to 6 months 25,556 44,944 46,598 30,231
6 to 12 months 22,201 40,147 81,257 61,661
1 to 2 years 14,623 29,066 48,178 29,977
2 to 3 years 5,083 10,102 19,025 47,145
3 to 4 years 4,471 8,886 19,671 8,663
4 to 5 years 616 1,225 13,977 12,435
5+ years 565 1,123 14,115 14,104
Total 135,527 241,195 442,896 322,807
ANNUAL REPORT 202481
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

4.7 Capital management risk
Capital risk is the risk that capital is insufficient or not of the best form to provide a buffer against losses arising
from unanticipated events, while also maximising the efficient use of capital with a view to enhancing growth
and returns, and adding long-term value to Tower's shareholders.
Tower has a documented description of its capital management process which sets out Tower's principles,
approaches, and processes in relation to capital management that enables it to operate at an appropriate level
of target solvency capital which is within the bounds of Tower's risk appetite.
The capital management process allows the Board, management, rating agencies and the regulator to
understand Tower's approach to capital management, including requirements for formulating capital targets,
and monitoring, reporting and remediating capital as required.
The operation of the capital management process is reported annually to the Board together with a forward-
looking estimate of expected capital utilisation and capital resilience. In addition, Tower carries out stress,
reverse stress and scenario testing to ensure the level of capital is appropriate given its risk appetite.
a. Regulatory solvency capital
The Reserve Bank of New Zealand (RBNZ) is the prudential regulator and supervisor of all insurers carrying on
insurance business in New Zealand, and is responsible for administering the Insurance (Prudential Supervision)
Act 2010. Tower measures the adequacy of capital against the Solvency Standards published by the RBNZ
alongside additional capital held to meet RBNZ minimum requirements and any further capital as determined
by the Board.
Foreign operations are subject to regulatory oversight in the relevant jurisdiction. It is Tower's policy to ensure
that each of the licenced insurers in the Group maintain an adequate capital position within the requirements of
the relevant regulator.
During the year ended 30 September 2024 the Group complied with all externally imposed capital
requirements (2023: complied).
Tower has applied the RBNZ’s new Interim Solvency Standard (ISS) from 1 October 2023.
Tower has calculated the below 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 until 1 March 2025.

2024
$000
2023
$000
PREPARED UNDER ISSPREPARED UNDER NLSS
PARENTGROUPPARENTGROUP
Solvency capital (2023: Actual
solvency capital) 323,834 339,139 145,421 174,734
Adjusted prescribed capital
requirement (2023: Minimum
solvency capital) 152,474 148,547 91,634 99,729
Adjusted solvency margin
(2023: Solvency margin) 171,360 190,592 53,787 75,005
Adjusted solvency ratio
(2023: Solvency ratio)212%228%159%175%
Tower is required to maintain a solvency margin of at least $0m (2023: $15m), due to a license condition issued
by the RBNZ.
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.
b. Financial strength rating
Tower Limited has an insurer financial strength rating of "A- (Excellent)" and a long-term issuer credit rating of
"a-" as affirmed by international rating agency AM Best Company Inc. in April 2024.
ANNUAL REPORT 202482
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

4.8 Operational risk
Operational risk is the risk of loss due to inadequate or failed internal processes or systems, human error or
from external events.
Tower's approach is to proactively manage our operational risks to mitigate potential customer detriment,
regulatory or legal censure, financial and reputational impacts.
Tower has in place appropriate operational processes and systems, including prevention and detection
measures. These include processes which seek to ensure Tower can absorb and/or adapt to internal or
external occurrences that could disrupt business operations.
Management and staff are responsible for identifying, assessing, recording and managing operational risks
in accordance with their roles and responsibilities. Associated controls for identified risks are recorded and
then actively monitored and managed through our enterprise risk management system (ERMS). Incidents are
managed by the first line of defence and overseen by the second line of defence, with ongoing reporting to
management and the Board Risk Committee.
Tower also maintains and regularly updates its Crisis Management, Business Continuity and Disaster Recovery
Plans to minimise the impact of material incidents or crisis events and to support continuity of critical systems
and processes.
4.9 Regulatory and compliance risk
Regulatory and compliance risk is defined as the risk of legal, regulatory or reputational impacts arising
from failure to manage compliance obligations, or failure to anticipate and prepare for changes in the
regulatory environment.
Tower, via its ERMS, has in place an obligations management framework. The framework provides operational
and managerial oversight of applicable and relevant regulatory compliance obligations to Tower and supports
Tower in discharging its obligations under legislation across NZ & the Pacific.
Tower engages with regulators and regularly monitors developments in regulatory requirements to support
ongoing compliance.
4.10 Conduct risk
Conduct risk is defined as the risk of not meeting customers' reasonable expectations.
Tower manages Conduct risk through a number of measures including undertaking ongoing product reviews
to ensure products are delivering good customer outcomes, reviewing customer feedback to identify conduct
trends or issues, completing quality assurance reviews, managing vulnerable customers, holding workshops
with frontline staff to identify potential conduct issues and embedding and monitoring controls across the
business to deliver fair customer outcomes.
Tower's approach to managing conduct risk is set out in its Conduct Governance Framework. The framework
is a collation of policies, frameworks and processes and ensures there's robust governance in place to oversee
Tower's conduct risk profile including reporting to the Management and Board Committees. From 31 March
2025, this framework will be superseded by Towers Fair Conduct Programme, developed in accordance with
requirements in the Financial Markets (Conduct of Institutions) Amendment Act 2022.
4.11 Cyber risk
Cyber risk is any risk associated with financial loss, disruption or damage to the reputation of Tower resulting
from either the failure, or unauthorised or erroneous use of its information systems.
Tower’s approach to Cyber risk is to proactively protect against, monitor for and respond to those cyber threats
seen to be targeting the organisation. Tower continues to monitor evolving key cyber risks, which are discussed
and reviewed on a monthly basis through our Management Risk and Conduct Committee and on a quarterly
basis with the Risk Committee. Risk mitigation is achieved through ongoing investment in Tower’s security
programme and Tower’s dedicated security function.
ANNUAL REPORT 202483
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

4.12 Environment, Social and Governance (ESG) risk
Tower Limited’s ESG risks and opportunities are identified and prioritized through our Materiality Assessment
and Risk Management Framework (RMF). They form the basis for Tower’s Sustainability Framework and include
climate-related risk outlined below.
a. Climate-related risk
Climate- related risk relates to the physical and transitional impacts of climate change. Physical risks are
associated with an increasing frequency and severity of severe weather events, sea level rise and coastal
inundation. Transitional risks are related to potential social, political and economic changes as New Zealand
and the world transition to low emission and climate resilient economies.
As a listed, licensed New Zealand insurer Tower qualifies as a climate reporting entity (CRE) under the Financial
Markets Conduct Act 2013 and the Aotearoa New Zealand Climate Standards (NZ CS 1, NZ CS 2 and NZ CS 3)
published by the XRB in December 2022 (CRD Regime). Our first group climate statement has been prepared
alongside our financial statements and annual report, and Tower will make these disclosures available on
Tower’s website, the New Zealand Stock Exchange (NZX) and Australian Stock Exchange (ASX). The climate
statement covers our New Zealand and Pacific operations and outlines the steps we are taking to address
climate-related risks and opportunities.
Tower’s RMF considers climate-related risks, which are regularly reported to the Board. Tower's approach to
managing climate-related risk includes continuing to expand our risk-based pricing strategy for climate-related
hazards, maintaining a robust reinsurance programme to provide protection from volatility in weather events,
planning for increasing large events over time in our budget process to limit financial impacts, and supporting
communities through climate change via product development.
Other than the impact on liability for incurred claims, Tower considers that climate change risk does not
materially impact the valuation of Tower's assets and liabilities, where these assets or liabilities are expected to
be realised in one year or less. For non-current assets, Tower has looked to its short-medium term forecasting,
which implicitly includes allowances for the risk of climate change in forecasts of the severity and frequency
of future claims, including large events. These forecasts show continued profitability for Tower, which supports
the carrying value of non-current assets. Accordingly, Tower does not consider that climate change risk has a
material impact on the assets and liabilities recorded in these financial statements, as at 30 September 2024.

5 Capital Structure
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.
5.1 Contributed equity
NOTE
2024
$000
2023
$000
Opening balance460,315 460,191
Share rights issued under Tower Long-Term Incentive Plan8.5419 124
Total contributed equity460,734 460,315
Represented by:
Opening balance379,483,987 379,483,987
Total shares on issue379,483,987 379,483,987
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.
On 9 September 2024, the Board approved $45m capital return by way of a compulsory share buyback.
The capital return remains conditional on shareholder approval at Tower’s Annual Shareholder Meeting in
early 2025; the receipt of High Court approval of the arrangement; Tower continuing to satisfy solvency and
prudential capital requirements and the Tower Board remaining satisfied that the capital return is prudent to
undertake. Subject to these conditions being fulfilled, the capital return is likely to occur in March 2025.
ANNUAL REPORT 202484
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

5.2 Reserves
2024
$000
2023
$000
Opening balance(3,098)(2,148)
Currency translation differences arising during the year(898)(950)
Foreign currency translation reserve(3,996)(3,098)
Opening balance – 1,707
Revaluation surplus transferred to retained earnings – (1,707)
Asset revaluation reserve – –
Capital reserve11,990 11,990
Separation reserve*(113,000)(113,000)
Reserves(105,006)(104,108)
* The separation reserve was created in 2007 at the time of the demerger of the New Zealand and Australian businesses in
accordance with a ruling provided by the Australian Tax Office (ATO). It will be carried forward indefinitely as a non-equity reserve
to meet the requirements of the ATO.
Recognition and measurement
The assets and liabilities of entities whose functional currency is not the New Zealand dollar are
translated at the exchange rates ruling at reporting date. Income and expense items are translated at a
weighted average of exchange rates over the period approximating spot rates at the transaction dates.
Exchange rate differences are taken to the foreign currency translation reserve.
Tower's land and buildings are valued at fair value less accumulated depreciation. Any surplus on
revaluation of these items is transferred directly to the asset revaluation reserve unless it offsets a
previous decrease in value recognised in profit or loss in which case it is recognised in the consolidated
statement of comprehensive income.
5.3 Net tangible assets per share
2024
CENTS
2023
CENTS
Net tangible assets per share73 48
Net tangible assets per share have been calculated using the net assets as per the balance sheet adjusted for
intangible assets (including goodwill) and deferred tax divided by total shares on issue.
5.4 Earnings per share
20242023
Profit from continuing operations attributable to shareholders
($ thousands)
70,884 2,587
Profit/(loss) from discontinued operations attributable to shareholders
($ thousands)
3,401 (3,609)
Total profit/(loss) attributable to shareholders ($ thousands)74,285 (1,022)
Weighted average number of ordinary shares for basic earnings
per share (number of shares)
379,483,987 379,483,987
Basic earnings per share (cents) for continuing operations18.7 0.7
Basic earnings per share (cents)19.6 (0.3)
The basic 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 8.4).
Tower has assessed if the future potential instruments have a dilutive impact on earnings. The long-term
incentive plan will not have a dilutive impact on earnings because shares are not expected to be issued, rather
purchased from the market.
5.5 Dividends
On 27 June 2024, Tower paid an interim dividend of 3.0 cents per share, totalling $11.4m .
On 28 November 2024, the Board approved a final dividend of 6.5 cents per share, with the dividend being
payable on 30 January 2025 for approximately $24.7m.
No dividends were paid during 2024 in respect of the 2023 financial year.
ANNUAL REPORT 202485
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

6 Other balance sheet items
This section provides information about assets and liabilities not included elsewhere.
6.1 Property, plant and equipment
30 September 2024
OFFICE
EQUIPMENT &
FURNITURE
$000
MOTOR
VEHICLES
$000
COMPUTER
EQUIPMENT
$000
TOTAL
$000
Composition:
Cost7,261 1,524 4,646 13,431
Accumulated depreciation(2,491)(1,198)(3,007)(6,696)
Property, plant and equipment4,770 326 1,639 6,735
Reconciliation:
Opening balance4,123 608 1,549 6,280
Depreciation(623)(241)(1,002)(1,866)
Additions1,360 33 1,092 2,485
Disposals(1)(26) – (27)
Foreign exchange movements(89)(48) – (137)
Closing Balance4,770 326 1,639 6,735

30 September 2023
OFFICE
EQUIPMENT &
FURNITURE
$000
MOTOR
VEHICLES
$000
COMPUTER
EQUIPMENT
$000
TOTAL
$000
Composition:
Cost6,052 1,702 3,587 11,341
Accumulated depreciation(1,929)(1,094)(2,038)(5,061)
Property, plant and equipment4,123 608 1,549 6,280
Reconciliation:
Opening balance2,244 970 2,203 5,417
Depreciation(496)(316)(1,102)(1,914)
Additions2,489 – 480 2,969
Disposals(71) – (16)(87)
Foreign exchange movements14 (18)(10)(14)
Assets reclassified as held for sale*(57)(28)(6)(91)
Closing Balance4,123 608 1,549 6,280
* Assets reclassified as held for sale include the assets of discontinued operations. Refer to note 8.4.
Recognition and measurement
Property, plant and equipment (PPE) is initially recorded at cost including transaction costs and
subsequently measured at cost less any accumulated depreciation and impairment losses.
Depreciation is calculated using the straight line method to allocate the asset's cost or revalued
amounts, net of any residual amounts, over their useful lives. The assets' useful lives are reviewed and
adjusted if appropriate at each reporting date. An asset's carrying amount is written down immediately to
its recoverable amount if it is considered that the carrying amount is greater than its recoverable amount.
Furniture & fittings 5-9 years
Leasehold property improvements 3-12 years
Motor vehicles 5 years
Computer equipment 3-5 years
ANNUAL REPORT 202486
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents

6.2 Intangible assets
a. Amounts recognised in the balance sheet
30 September 2024
GOODWILL
$000
SOFTWARE AND
WORK IN PROGRESS
$000
CUSTOMER
RELATIONSHIPS
$000
TOTAL
$000
Composition:
Cost17,744 107,977 40,674 166,395
Accumulated amortisation – (47,122)(22,652)(69,774)
Intangible Assets17,744 60,855 18,022 96,621
Reconciliation:
Opening balance17,744 57,326 23,454 98,524
Amortisation – (13,837)(5,432)(19,269)
Additions* – 18,392 – 18,392
Disposals – (47) – (47)
Transfers to property,
plant and equipment
– (979) – (979)
Closing Balance17,744 60,855 18,022 96,621
* During the year ended 30 September 2024, additions to software assets primarily related to continued investment in Tower’s core
insurance platform and website, and digitisation of claims processes. Total software additions in the year ended 30 September
2024 includes $10.8m (2023: $9.6m) of internally generated assets.

30 September 2023
GOODWILL
$000
SOFTWARE AND
WORK IN PROGRESS
$000
CUSTOMER
RELATIONSHIPS
$000
TOTAL
$000
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* – 17,526 5,900 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.
ANNUAL REPORT 202487
Notes to the consolidated financial statements (continued)
Our strategy2024 in reviewSustainabilityConsolidated financial statementsCorporate governanceGRI content index Contents