Tower Limited Annual Meeting Materials

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




11 February 2025


Tower Limited Annual Shareholder Meeting Materials

Attached are:
a. Market Announcement
b. Address to Shareholders
c. Investor Presentation

Ahead of Tower’s Annual Shareholder Meeting, to be held today at 10am.


ENDS

This announcement has been authorised by Michael Stiassny, Chair

For media enquiries, please contact in the first instance:
Emily Davies
Head of Corporate Affairs and Reputation
+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

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

11 February, 2025
Tower reports positive Q1 trading performance prior to ASM
Kiwi and Pacific insurer, Tower Limited (NZX/ASX: TWR) is reporting strong business
performance prior to its annual shareholder meeting today, following an update on its 2025
financial year earnings guidance last week.
Tower CEO, Blair Turnbull says, “The first quarter trading performance reflects year-on-year
improvements in both business-as-usual (BAU) claims and management expense ratios, and
continued GWP growth.
“This positive business performance is supported by our strategy of selecting the right risks
for the right price and achieving sustainable growth and efficiencies through the use of
digital technology and data,” he says.
The BAU claims ratio has decreased substantially to 39%, down from 57% for the same
period last year. This improvement is due to a combination of continued benign weather,
easing inflation, a lower number of total loss house claims and enhanced risk selection.
The management expense ratio (MER) has continued to improve, reducing to 30% in the
quarter from 32% in the prior comparable period. This improvement was driven by gross
written premium (GWP) growth, operational efficiencies, and disciplined cost control.
GWP rose by 6%
1
to $155m compared to the same period last year. Average premiums have
reduced year on year due to lower inflation and volume growth in lower risk assets. Ninety-
two per cent of new house insurance policies in the year were rated by Tower as low or very
low for flood risk, up from 87% in the prior year.
To w e r ’s New Zealand business grew by 8,000 policies, predominantly in the house and
contents markets, and overall customer numbers increased from 305,000 to 310,000 from
30 September, 2024.
So far in FY25, Tower has recorded one large event - the Dunedin flooding event in October,
with an estimated cost of around $3m. Tower’s large events allowance for FY25 is $50m.
To w e r has now closed more than 99% of both the Auckland Anniversary and Cyclone
Gabrielle FY23 catastrophe event claims.
Mr Turnbull says the performance demonstrates the strength of To w e r ’s strategy to become
the leading direct insurer in New Zealand and our Pacific markets, fostering a high-
performance culture and focusing on innovation in digital technology.
“I believe Tower is a fantastic company that is well-positioned to continue delivering
sustainable customer and premium growth, improved efficiencies, and attractive

1
GWP growth has been adjusted to exclude sold portfolios which include the Solomon Islands business, the Vanuatu
subsidiary and the New Zealand commercial rural portfolio.

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

shareholder earnings. I am pleased to be leaving To w e r in the hands of our strong and
focused management team,” says Mr Turnbull.
FY25 Guidance
On 5 February Tower advised the market that it expects FY25 full year underlying NPAT to
be between $60m and $70m. This assumes full utilisation of the $50m large events
allowance, of which $3m has been used. Tower also expects GWP to be between 7% and
12%, and the combined operating ratio (COR) to be between 84% and 86%.
Financial information provided in this update is based on Tower’s unaudited management
accounts as at 31 December, 2024.
Ends
This announcement has been authorised by Tower Limited Board Chair, Michael Stiassny.


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

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1

Tower 2025 Annual Shareholder Meeting Address
11 February, 2025
Slide 1 – Cover page – Michael Stiassny
Mōrena, good morning and thank you for making the time to join us this morning.
My name is Michael Stiassny, Chairman of Tower Limited. As it’s now 10.00am, I am pleased
to open Tower’s Annual Shareholder Meeting.
On behalf of my fellow Directors, welcome to all of you here at Eden Park as well as those
who have joined via the Computershare webcast. We appreciate you taking the time to join
us today.
With me in the room this morning are directors Marcus Nagel, Graham Stuart, Geraldine
McBride and Mike Cutter.
[PAUSE]
Also joining us in the room today, on his second to last day in the job is our Chief Executive
Officer, Blair Turnbull. And, our Chief Financial Officer, Paul Johnston, who will take over as
interim CEO on Thursday, and our Deputy CFO, soon to be interim CFO, Angus Shelton.
Our Auditors, PWC are also present and are available to answer shareholder questions.
Before we start the meeting proper, there are a few housekeeping matters to cover off. We
appreciate your patience.
For those in the room:
• If you have a cell phone, please switch it off.
• If we need to evacuate this room for any reason, please follow instructions from
Eden Park staff or security.
• If you are feeling unwell, please advise one of our Tower staff who will assist you.
For those who are attending the meeting online:
• We ask that you follow the information provided in the Notice of Meeting regarding
voting and asking questions.

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• Should you require any assistance, you can type your query and one of the
Computershare team will assist, or alternatively, you can call Computershare using
the numbers on this slide.
Slide 2 – Questions
Please note that only shareholders and proxies can ask questions and submit votes.
I encourage all of you attending online to submit questions via Computershare at any time
during the meeting. If you have a question, please select the Q&A tab on the right half of
your screen. Type your question into the field and press send. Your question will be
submitted immediately. Specific questions on any of the resolutions to be considered will be
answered as the relevant resolution is put forward, while general questions will be
addressed later in the meeting.
Questions may be moderated, or if we receive multiple questions on a topic, they may be
amalgamated. However, questions will not be censored, unless they are unseemly or rude.
If we run out of time to answer all questions during this meeting, we will answer them
directly via email and post the responses on our website.
When asking a question in the room, please use the microphone and introduce yourself by
name.
To any media present – welcome. Just a reminder that this is a meeting for shareholders,
but Blair, Paul and I will be happy to talk to you after the meeting.
Slide 3 – Voting process
Voting today will be by way of a poll on all items of business. To provide you with enough
time to vote, I will shortly open voting for all resolutions.
At that time, if you are eligible to vote at this meeting, you will be able to cast your vote
under the Vote tab. To vote, simply select your voting direction from the options shown on
screen. You can vote for all resolutions together, at once, or for individual resolutions. When
the tick appears, your vote has been cast. To change your vote after that time, simply select
‘Change Your Vote’. You can do this until I declare voting closed. For those in the room if
you do not have a voting paper, please indicate now by raising your hand and a member of
Computershare’s team will assist you. Voting papers will be collected at the end of the

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resolution and voting section of the meeting by the Computershare team who will act as
scrutineers and the results will be posted to the NZX and ASX exchanges later today.
[PAUSE]
I now declare voting open on all items of business. The resolutions will be open in the vote
tab, you may submit your votes at any time, and I will let you know in advance that voting
will be closing.
Slide 4 – Agenda
Here is today’s meeting agenda.
We will provide you with an update on last year’s performance and our strategy, the
progress we’ve made at Tower in recent months and our focus looking forward.
Following Blair and Paul’s presentations, we will move to the formal resolutions set out in
the Notice of Meeting.
Let’s now move on to the formal part of the meeting.
Apologies
Are there any apologies?
(If not:) Thank you.
(If yes:) Thank you, I will ask the Secretary to record those in the minutes.
Quorum
The Company’s constitution requires a quorum of 10 shareholders for this meeting. This
requirement has been met, and a quorum exists.
Proxies
In addition to those attending in person today, 565 shareholders, holding a total of
251,239,854 shares, have appointed proxies (including proxies instructed to abstain). The
appointed proxies represent 61.18% of valid securities voted.
In my capacity as Chairman of the meeting and in my own name I hold proxies for 439
shareholders, representing 247,125,990 shares, or 65.12% of all shares on issue.
I intend to vote all undirected proxies I have received in favour of resolutions 1, 2 and 3.

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Annual Report and Notice of Meeting
The annual report, together with Tower’s inaugural climate statement, was made available
on Tower’s website on the 28th of November 2024.
I propose that we take the Annual Report and Notice of Meeting as read.
Slide 5 – Chairman’s update
It has been a good year for Tower shareholders.
I am pleased to address you today, as we have paid FY24 dividends of 9.5 cents per share,
Tower has entered the NZX 50 Portfolio Index and MidCap Index, and we are about to seek
your approval for a capital return of $45 million.
There is no question FY24’s strong results were significantly aided by the absence of large
events in the period. The weather was kind. But more importantly, Tower achieved year-
on-year improvements in business-as-usual claims, premium growth and operational and
digital efficiencies.
These are the measures that will ensure Tower remains well-positioned to deliver value to
shareholders. And it’s pleasing to note that the first three-months of FY25 continued in the
same vein, as Blair will outline shortly.
Our strategy, which is now well embedded, is delivering both an improved customer
experience and business performance. We have a solid platform; but there’s more work to
be done and further gains to be had.
[pause]
In the wake of the recent tragic California wild fires, there are lessons for New Zealand.
These fires have wreaked havoc and had a huge human cost, in terms of both loss of life and
property. Sadly, they have also laid bare a massive insurance gap that has been decades in
the making.
California is the largest insurance market in the United States and subject to wildfires,
earthquakes and other natural disasters. Climate change has made these events more
frequent and severe, pushing up insurance and reinsurance costs at a time when California

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set regulatory limits on premiums. Unable to fully price in the increased likelihood and
severity of risk, unsurprisingly, many insurers decamped.
Instead, residents have been forced to rely on the Fair Access to Insurance Requirements
(FAIR) plans, a centralised pooling insurance programme created in 1968 to provide
coverage for those who can’t obtain insurance from private insurance companies. These
plans offer limited cover, comparatively expensive premiums, low policy caps. Media
coverage suggests they also have earned a reputation for unreasonably low settlements,
delayed payments and disproportionately high litigation rates with policyholders. Many
residents simply don’t bother.
In addition, there is no comprehensive climate adaptation policy to incentivise risk
reduction or support people to leave areas made unsafe by climate change-related risks.
The end result is the vast majority of people and properties affected in the most recent fires
have little or no insurance at all.
Early estimates are predicting more than US$200 billion in economic losses from the
wildfires ... less than 25% of those losses are likely to be insured with only US$20-$45 billion
estimated in insurance payouts. Who’s going to pay the balance?
[pause]
We need to avoid this situation in New Zealand at all costs. While we currently have
extraordinarily high rates of residential insurance, mounting climate impacts do put
pressure on premiums as reinsurance becomes more expensive.
To the best of its ability, Tower will continue to support communities as risks evolve by
pricing accordingly. But we have always been clear that we cannot help everyone.
[pause]
As the nation with the second highest natural risk profile in the world, collectively we need
to do more. Our primary focus must be on reducing risk in our most hazard-prone
communities to keep insurance affordable and ensure the safety of people and property.
The insurance sector needs long-term certainty about climate change adaptation policy to
ensure insurance remains available and affordable, and the reinsurance environment
remains stable.

6

[pause]
In late January, the Government responded to the Finance and Expenditure Select
Committee report on climate adaptation and to advice from the Climate Change
Commission.
Climate Change Minister Simon Watts acknowledged the reports had been useful and that
the Government was moving fast to ensure legislation dealt properly with the challenges
posed by climate change. He went so far as to say legislation would be introduced this year;
he agreed that political consensus for solutions was essential; and that the status quo is
unacceptable ... so far, so good.
But the elephant in the room – the question of which parties pay for adaptation and how
much each should pay – looms large and remains unresolved. And, until there is clarity and
consensus on this vital point, Tower remains concerned.
There is significant, complex work still to be done and we’re out of runway. The 2023
Auckland floods and Cyclone Gabrielle are estimated to have cost the economy $15 billion.
We might not know when, but we do know that a similar event – or worse –
will occur.
[pause]
As a responsible insurer we would urge the Government to complete a climate change
adaptation framework that has cross-party support, as quickly as possible.
That framework is crucial for minimising the insurance gap and preventing New Zealanders
experiencing the anguish that many thousands of Californians are experiencing today.
[pause]
Tower has been ahead of the pack in introducing risk-based pricing and the risk data is
continually being refined and additional risks assessed. But we won’t be resting on our
laurels. Climate change is constantly presenting new challenges, and we have further work
to do to improve both our processes and risk identification.
A consistently strong business performance is essential to ensure we can continue that vital
work.

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[pause]
Before I hand over to Blair to give his last public address as CEO, on behalf of the board, I
wish to thank him for the significant contribution he has made to Tower. We wish him
‘safari njema’ which I’m reliably informed means ‘safe travels’ as he runs around Kilimanjaro
before taking up his new role as CEO at Milford Asset Management.
I’d also like to acknowledge and thank Graham Stuart who is retiring from the Board today.
Graham joined the board in 2012. He has been a considered voice at the board table and
showed an unwavering commitment to Tower’s transformation. [pause]
Blair will take you through the FY24 results and three-month trading update. Paul will then
provide an overview of the longer term outlook before we take questions.
Slide 6 – CEO’s address title slide – Blair Turnbull
Tēnā koutou katoa and thank you Michael.
A warm welcome to everyone joining us today. I am pleased to recap our full year 2024
results as well as share a performance update for the first three months of the 2025
financial year. Paul will also take the opportunity to give you an overview of Tower’s plans
to continue growing and innovating in the future.
Slide 7 - Our Strategy
To start, a recap on our strategy which is delivering results and provides an important
platform for further improvements.
We continue to focus on four key areas – delivering a leading customer experience, ensuring
we are operationally efficient, fostering an effective and distinctive culture and ultimately
continuing to build a resilient business.
Slide 8 – FY24 performance
And now to recap on our results for the financial year ending 30 September 2024, which
demonstrate Tower’s positive operational and business performance.
Gross written premium for the year to 30 September 2024 increased to $595 million, up
15% on FY23, excluding divested portfolios.

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Customer numbers decreased by 2% to 305,000, partly due to our tightened risk appetite
for high-theft motor vehicle models.
Rating increases, enhanced processes, a reduction in motor theft claims, as well as calmer
weather in comparison to prior years led to an improvement in the BAU claims ratio to 48%.
Pleasingly our management expense ratio improved to 31.4%, thanks to GWP growth
combined with disciplined cost control and improved efficiencies.
Tower experienced no large events during the 2024 financial year.
Large event costs for FY24 were negative $2.3 million, due to the absence of large events
and a favourable revision of prior year large event costs. This was a reduction from $55.6m
of large event costs in FY23.
Reflecting our positive operational and business performance we reported an underlying
profit after tax of $83.5m in FY24, up from $7.1m in FY23.
Reported FY24 profit was $74.3m compared to a loss of $1m in FY23.
On the basis of these results Tower declared a total FY24 dividend of 9.5 cents per share.
Slide 9 – FY24: Continued premium growth
Gross Written Premium increased by 15% in FY24. This was predominantly driven by the
prior period rating increases designed to mitigate the impacts of inflation, crime and
increased reinsurance costs following the 2023 catastrophe events.
In FY24 we were pleased to see our proportion of house policies compared to total policies
increase as we focused more on the home insurance market. Nearly a third of our house
insurance GWP growth came from volume.
In FY24 the number of motor policies reduced as we tightened our risk appetite for high
theft vehicles, while GWP from our motor portfolio grew by 13%.
Our risk-based pricing and underwriting continues to give us a competitive advantage by
enabling more accurate risk selection and pricing. At the end of FY24 91% of house policies
rated low or very low for flood risk, a 1% improvement from FY23.

9

We began to moderate premium increases, in the second half of FY24 as inflation began to
settle, particularly for lower-risk motor vehicle makes and models that are shown to have
lower risk of theft.
Our retention rate for our New Zealand risk portfolio remained stable at 77%.
Just over half of our customers held multiple policies with us.
To help our customers manage their insurance and affordability considerations, we
promoted Ways to Save, a My Tower feature for our New Zealand customers that offers
useful tips and options to reduce premiums.
Slide 10 – FY24: Continued improvement in MER
We were pleased to achieve further reduction in MER to 31.4% in FY24, down from 32% in
FY23.
It’s clear that the $150m Tower has invested in targeted growth, operational efficiency
initiatives and streamlining the business in the past five years is realising benefits.
The expansion of our Suva hub has delivered well in this respect. In the year our Suva team
answered 55% of all New Zealand sales and service calls to Tower; an increase from 16% in
FY23.
In FY24 we completed the sales of our Solomon Islands business and Vanuatu subsidiary.
Tower also stopped offering commercial rural insurance in November 2023.
Our commission ratio continued to improve, reducing to 1.5% in the year from 2.1% in FY23
partly due to legacy portfolio purchases and transitioning to referral arrangements that
reduced total commission.
Slide 11 – FY24: BAU claims ratio significantly improves
In FY24 our BAU claims ratio improved significantly from 55% in FY23 to 48%, thanks to
effective pricing and underwriting, efficient claims management, calm weather and other
external factors.
Targeted rating, across our house and motor portfolios reduced higher risk policies and
therefore claims. General rating increases implemented in FY23 and early FY24 to offset
inflation and increased reinsurance costs also continued to earn through.

10

With an aim to more quickly and efficiently complete claims, we launched a new digital
motor assessing tool, and automatically allocated simple motor and home claims to
repairers via My Tower online.
External factors have also played a part with calmer weather reducing the frequency of
claims in New Zealand and the Pacific region.
These factors along with the initiatives we have implemented saw the number of open BAU
claims in New Zealand halve and claims turnaround times improve by a third.
Slide 12 – FY24: Delivering shareholder returns
Off the back of the 2024 financial year Tower has proposed to return $81m to shareholders
in the form of dividends and a capital return in the first half of 2025.
We paid a final dividend of 6.5 cents in January 2025, bringing the full year dividend to a
total of 9.5 cents per share.
Tower’s solvency ratio was 212% as at 30 September 2024, after the final dividend and
before the capital return.
Slide 13 – FY25: Q1 trading update
Turning now to our trading performance for the first three months of our 2025 financial
year which features strong business-as-usual (BAU) claims performance, operational
efficiencies, and targeted growth.
Slide 14 – FY25 Q1 trading update
Here is a summary of our quarter one performance. The financial information provided in
this update is based on Tower’s unaudited management accounts as at 31
st
of December,
2024.
Slide 15 – Q1: continued premium growth
GWP rose by 6% (excluding divested portfolios) to $155m compared to the same period last
year, reflecting growth in lower risk assets.
While rating increases have now flattened on average, following the higher rate increases
implemented in early FY24, we are pleased to see strong volume growth increasing over the
first three months of FY25.

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Customer numbers increased to around 310,000 over the quarter as we welcomed around
5,000 new customers to Tower. Similarly, Tower’s risk count increased by around 8,000 risks
in the quarter, predominantly in the house and contents markets which saw 12% GWP
growth, half of which was from volume.
New Zealand retention remains consistent year on year at 78%.
Our risk-based pricing approach is continuing to improve our risk exposure with 92% of new
policies rated low or very low for flood risk.
Slide 16 – Q1: Customer experience
Our focus on customer experience combined with our use of digital technology and data has
driven consistent improvements in the past year. Our overall net promoter score further
increased this quarter to plus 41, up from plus 38 at 30 September 2024.
The benefits of our core platform (now live across the Tower group) and our expanded Suva
Hub team continue to be realised, contributing to a pleasing reduction in our sales and
service contact centre abandonment rate, now at 7% compared to 9% in the prior year.
Active My Tower users increased by 4% to 170,000 over the quarter, and My Tower log ins
have increased by 7% year on year demonstrating that our online journeys continue to
resonate with customers.
We were pleased to win the first place Supreme Award for Customer Retention in the New
Zealand CRM Contact Centre Awards in September 2024.
Last year Canstar also announced Tower as the winner of its Home and Contents
Outstanding Value and Insurer of the Year Awards.
Slide 17 – Q1: Continued improvement in MER
The management expense ratio (MER) has continued to improve, reducing to 30% in the
quarter from 32% in the prior comparable period.
This improvement was driven by our increasing scale from targeted premium growth as well
as operational efficiencies.
Our operational hub in Suva is now answering 70% of all New Zealand sales and service calls
and our digital channels are increasingly picking up our service, sales and claims tasks.

12

Slide 18 – Q1 BAU claims ratio significantly improves
The BAU claims ratio has decreased substantially to 39%, down from 57% for the same
period last year.
This improvement is due to a combination of prior period underwriting actions and targeted
rating increases for higher-risk assets, alongside a combination of external factors which
include calmer weather and lower inflation.
Our work to enhance efficiencies has included bringing motor vehicle assessments
predominantly in-house which has reduced claims assessment costs.
New digital claims journeys have shifted more of the claims process online with 53% of
motor claims now automatically allocated to a repairer.
Slide 19 – Strong capital and solvency position
Tower remains well capitalised with strong solvency margin well above both regulatory
requirements and our internal targets.
And we expect this to continue after various changes to the rules around calculating
solvency are implemented.
Tower’s regulatory solvency position is calculated under the Reserve Bank of New Zealand’s
(RBNZ) Interim Solvency Standard (the ISS). In December 2024, the RBNZ released further
amendments to the ISS, which corrects issues in the previous solvency standard, and will be
effective from 1 March 2025.
These amendments have areas of complexity and insurance industry interpretations of
them are still being developed.
Our assessment, so far, is that if we had reported our solvency position under the amended
version of the ISS, our solvency margin at 30 September 2024 would have been $139.6m,
rather than the $171.4m we reported under the prior version of the ISS.
Tower uses an internal target for capital management, including determining dividends and
capital returns, and our internal forecasts had allowed for changes to the ISS. Therefore
there is no direct impact from the RBNZ’s amendments to the Board’s plans to distribute
dividends or capital to shareholders.

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Using the amended version of the standard, our pro forma solvency position at 1 January
2025 shows we are holding $167.5m more solvency capital than the regulatory minimum
capital requirement.
In accordance with the ISS, the planned capital return of $45m has not yet been taken into
account in the reported solvency position, however, if it were, Tower would still have a
solvency margin of $122.5m as at 1 January 2025.
Before I hand you over to our current CFO, soon to be interim CEO, Paul Johnston, can I just
say a couple of words to thank the Board, Management, shareholders and our people for
the opportunity to lead Tower. It has been an absolute privilege and a pleasure, one that I
have enjoyed enormously, and I am proud of what we’ve all acheived.
Over to you now, Paul.
Slide 20 – Looking forward – Paul Johnston
Thank you, Blair.
Looking forward we will continue our focus on strategic delivery and strong business
performance.
Slide 21 - FY25 guidance and future targets
Tower’s FY25 guidance and future targets were updated last week on 5 February following
the strong Q1 business performance Blair has just outlined and early indications from
January’s performance..
In FY25 Tower expects GWP growth - excluding revenue from sales of subsidiary operations
- of between 7% and 12%.
We have set a prudent large events allowance of $50m, $3m of which has been used to
date.
We expect further improvements to our management expense ratio which we anticipate
will be less than 29%.
And we are targeting a combined operating ratio of between 84% and 86%.
Assuming full utilisation of the $50m large events allowance Tower anticipates underlying
NPAT to be between $60m and $70m.

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Slide 22 – Focus on customer experience and targeted growth
This year Tower is continuing to invest in creating leading customer experiences, while
targeting the right risks at the right price.
This includes applying landslide and sea surge risk ratings to policies at customers’ next
renewal date and adding these perils to our automated customer-facing quote-to-buy tool,
where customers can already see their home’s risk ratings for earthquake and flood hazards.
We will continue our focus on increasing new business from home insurance policy sales by
targeting high quality risks.
In line with expectations, we are already seeing growth in our motor book as our pricing
becomes more attractive for lower risk vehicles.
And we will continue to grow through partnerships including Kiwibank, homes.co.nz and
HealthCare Plus who joined us in FY24.
We are also looking to further increase customer retention by improving our online policy
renewal experience.
As we work to continually improve our customer experience, we remain focused on helping
customers manage their insurance and affordability concerns.
Slide 23 – Continuous efficiency & process improvements
In FY25, we are continuing to focus on delivering efficiency and process improvements.
We are aiming for 80% of all New Zealand service tasks to be completed via digital channels
by the end of FY27.
Following the launch of our new motor assessing system in FY24, we also plan to launch a
new house assessing system. This is all about continuing to drive down assessment times
and repair costs.
We are also working to implement a new contact centre platform in FY25 designed to
deliver greater frontline efficiencies and improved customer experience.
As we examine and improve our systems and processes, we are working to address the root
causes of and are applying lessons from the errors that led to customer remediations. This is
a strategically important programme for our business which focuses on investigating root

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causes of incidents with a view to developing strategies to address those root causes,
enhancing delivery and project execution and improving end-to-end customer data
management at Tower.
Our work to streamline the business continues having completed the exit of our New
Zealand commercial rural portfolio in January, another step towards decommissioning our
last legacy technology system in New Zealand.
Slide 24 - Fostering sustainability
Navigating the broader effects of climate change is essential to our business as a general
insurer. We are continuing to invest in initiatives and products that foster sustainability and
future climate change resilience.
Innovation will be key to our ongoing success. One cost-effective alternative to traditional
insurance is parametric insurance, which we have now implemented in three Pacific nations.
In FY24, we partnered with the United Nations Capital Development Fund (UNCDF), global
insurtech, CelsiusPro, to offer this product on a digital platform. We are now working to
achieve scale by delivering parametric insurance through new strategic partnerships that
are in development.
FY24 scope 1 and 2 greenhouse gas emissions were 20% below our FY20 baseline year.
Detailed information was included in our inaugural climate statement released on 28
November 2024. The statement covers in detail the climate change risks and opportunities
we’ve identified, along with our strategic responses aimed at supporting a low-emissions
and resilient future.
We continue to support education by awarding five university scholarships in New Zealand
and Fiji in FY24.
An important part of our business strategy is to build an effective and distinctive staff
culture across our New Zealand and Pacific locations.
This slide shows some of our FY24 people-related metrics, including our staff engagement
and gender pay equity scores and our various employee representation groups.

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Late last year we were pleased to win the Excellence in Workplace Diversity, Equity &
Inclusion award at the 2024 ANZIIF New Zealand Insurance Industry Awards as well as the
Fiji Prime Minister’s Employer of the Year award.
We’re committed to making Tower an even better place to work, enabling us to attract and
retain talented people and empower our teams to show up in the best way possible for our
customers.
Slide 25 – Continued focus on strategic delivery & strong performance
Sharp focus remains on delivering our strategy and strong business performance.
We will continue investing in our customer experience to achieve targeted customer and
premium growth.
We will continue to work through customer remediations and engage with the FMA in
relation to our multi-policy discount remediation and associated proceedings, while
implementing the lessons learnt from these experiences.
We will continue to improve efficiencies, via digitisation and enhanced processes.
And we are committed to maintaining our strong capital and solvency position while
investing for the future.
Ultimately, we are focused on delivering long-term shareholder value and sustainable
returns.
Thank you for your time this morning, I will now hand back over to the Chair.
Slide 26 - Shareholder Resolutions – Michael Stiassny
Thank you, Paul.
I now propose that we move to the next item of business, which is the shareholder
resolutions before the meeting. Resolutions 1 and 2 are ordinary resolutions, each passed
by a simple majority of votes of those shareholders entitled to vote and voting on the
relevant resolution. Resolution 3 is a special resolution. In order for a special resolution to
be passed it must be approved by a majority of 75% of the votes of those shareholders
entitled to vote and voting on the resolution.

17

As noted earlier, voting has already opened online and will close shortly after discussions on
the resolutions are completed so that everyone has the opportunity to cast their votes.
Slide 27 – Shareholder resolutions
Resolution 1 - Authorisation to determine auditor remuneration
The Companies Act provides that a company’s auditor is automatically re-appointed unless
there is a resolution or other reason for the auditor not to be re-appointed. The Company
wishes PwC to continue as the company’s auditor and PwC has indicated its willingness to
do so.
The Companies Act provides that the fees and expenses of the auditors are to be fixed by
the Company, or in the manner that the company determines at the Annual Meeting. The
Board proposes that, consistent with past practice, the auditor’s fees be fixed by the Board.
I therefore:
• Record that the auditors, PwC, are automatically re-appointed as auditors of the
company; and
• Move that the Board be authorised to determine the auditor’s fees and expenses for
the 2025 financial year.
At this point, I would also like to note that the New Zealand Shareholders Association policy
and international best practice is that the Audit Firm should not serve more than 10 years
and the Lead Audit Partner should be rotated at five years to ensure the appropriate degree
of independence is maintained. We agree with this view and the Board has adopted a policy
of requiring a rotation of the Lead Audit Partner at least every five years and a tender for
the Audit Firm, if not necessarily a change in firm, at least every 10 years. I note that our
Lead Audit Partner rotated last year and we have included Audit Firm tenure and Lead Audit
Partner rotation information in the Corporate Governance Statement on our website.
Are there any questions?
[FOLLOWING ANY QUESTIONS]
Resolution 2 - Re-election of Marcus Nagel as Director of Tower Limited.

18

Marcus Nagel retires by rotation, and being eligible, offers himself for re-election. I now
invite Marcus to address this meeting on his proposed re-election.
[MARCUS NAGEL ADDRESS]
Thank you, Marcus. I will now move that Marcus Nagel, who retires on rotation in
accordance with NZX Listing Rule 2.7.1 be re-elected as a director of Tower Limited
Are there any questions?
[FOLLOWING ANY QUESTIONS]
Resolution 3 - Approval of capital return via a scheme of arrangement
As outlined in the Notice of Meeting, in 2024, the Board concluded a strategic review which
determined we will continue executing Tower’s current business strategy under the existing
ownership structure, and pursue organic growth opportunities that deliver accretive value.
As part of that strategic review, the Board considered Tower’s capital structure in light of
the current strategy, which aims to deliver sustainable growth and efficiencies.
Given this strategy and the lack of large-scale claims events, the Board concluded that
Tower had excess capital relative to the requirements of the business and its prudential
capital reserving requirements.
The share buyback is a standard method of returning capital to shareholders for listed
companies. The Board also chose this method as:
• it ensures that the return of capital will be made in a timely manner;
• all shareholders are treated on the same basis and that the return of capital does not
alter shareholders’ proportionate voting or distribution rights, and;
• the payment made to shareholders is appropriately treated as a return of capital for
New Zealand tax purposes with IRD approval.
As announced on 21 October last year, we have received IRD approval for the proposed
return of capital. Assuming we receive shareholder approval of the scheme of arrangement

19

today; and the grant of final Court orders, and providing the Board remains satisfied in its
sole discretion that:
• Tower is complying with all solvency and regulatory capital requirements, including
under its capital management process requirements and;
• that it remains prudent to undertake the Scheme, up until the time the Scheme is
given effect,
we expect to return capital to shareholders in early April.
Are there any questions?
[FOLLOWING ANY QUESTIONS]
I will now move that the scheme of arrangement relating to the return of capital to
shareholders, as set out in the Arrangement Document annexed to the Notice of Meeting,
dated 10 January, 2025, be approved.
That concludes our discussion on the items of business.
So, if you haven’t already done so, please cast your votes now. Voting will close in
approximately two minutes. The votes will then be counted under the scrutiny of
Computershare who will now begin collecting the voting papers from within the room.
We will now pause for a moment to ensure that all questions relating to the resolutions
have been received.
[PAUSE]
Right, let’s move on. The final item on our agenda is Questions and General Business:
Slide 28 – Questions & General Business
Are there any matters of General Business? Or any questions?
[FOLLOWING ANY QUESTIONS]
In a minute, I will close voting. This is your final chance to ensure that you have cast your
vote on all resolutions. I will now pause to allow you time to finalise those votes.

20

[PAUSE for 60 seconds]
Voting is now closed.
The results of these polls will be released to the stock exchanges later today.
Ladies and gentlemen that concludes the formal business of our meeting and I’d like to
thank you for your participation.
I declare the meeting closed. I now invite those of you in the room to join the board and
executive team for refreshments in the area to your left. Thank you.

---

Tower
Annual
Shareholder
Meeting
11 February, 2025

Questions
2
Shareholder & Proxyholder Q&A Participation
Written Questions: Questions may be submitted
ahead of the meeting. If you have a question to
submit during the live meeting, please select the Q&A
tab on the right half of your screen at anytime. Type
your question into the field and press submit. Your
question will be immediately submitted.
Help: The Q&A tab can also be used for immediate
help. If you need assistance, please submit your query
in the same manner as typing a question and a
Computershare representative will respond to you
directly.
Phone numbers:
•NZ - 0800-650-034
•Overseas - +64 9 488 7800

Voting process
3
Shareholder & Proxyholder Voting
Once the voting has been opened, the resolutions and voting
options will allow voting.
To vote, simply click on the Vote tab, and select your voting
direction from the options shown on the screen. You can vote for
all resolutions at once or by each resolution.
Your vote has been cast when the tick appears. To change your
vote, select ‘Change Your Vote’.

4
Chairman’s update
Michael Stiassny, Chairman
CEO’s address
Blair Turnbull, Chief Executive Officer
Agenda
Shareholder resolutions
Questions & general business
Michael Stiassny, Chairman
Looking forward
Paul Johnston, Chief Financial Officer

5
Chairman’s update
Generating value for shareholders
•FY24 total dividends 9.5 cents per share
•$45m capital return proposed
•Tower entered the NZX 50 Portfolio Index and MidCap Index
Strategy embedded and delivering results
•Improved customer experience and business performance
•Risk-based pricing and strengthened underwriting capabilities bolstering market position
•Ongoing enhancements in digital and operational efficiencies continue to build resilience
Further upside
•Strong business performance enables continued investment in further improving processes and risk
assessment
Strong business performance provides solid platform for further gains

6
CEO
address
Blair Turnbull
Chief Executive Officer

7

8
9.5 cents per share
vs no dividend in FY23
Dividend
Total FY24 declared dividends
48%
vs 55% in FY23
FY24 performance
Positive operational and business performance
BAU claims ratio
(Business as usual)
MER
(Management expense ratio)
31.4%
vs 32.0% in FY23
Large event costs
(including reinsurance reinstatement)
-$2.3m
vs $55.6m in FY23
Reported profit
$74.3m
vs $1.0m loss in FY23
Prior year metrics have been restated to align to IFRS 17 for consistent comparisons
Note 1: Excluding divested portfolios. 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
Note 2: Large event costs are negative in FY24 due to due to the absence of large events in the financial year and a favourable revision to prior year large events costs
Note 3: Definition of underlying profit and a reconciliation to reported profit is included in the appendices
GWP growth
(Gross written premium)
15% | $595m
vs $527m in FY23
$83.5m
vs $7.1m in FY23
Underlying profit
305,000
vs 311,000 in FY23
Customers
1
1
2
3

9
FY24: Continued premium growth
Targeted growth
•House GWP growth 18%; 72% rate, 28% volume
•Motor GWP growth 13%; off-risking of high theft
vehicles reduces number of motor policies
•Risk-based pricing improving exposure; 91% of policies
rated ‘Low’ or ‘Very Low’ flood risk (FY23: 90%)
Addressing customer affordability
•NZ retention at 77%(FY23: 77%)
2
•53% of customers have multiple policies
•29k customers accessed ‘Ways to Save’ feature
G R O S S W R I T T E N P R E M I U M ($m)
Note 1: Excluding divested portfolios. 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
Note 2: Commercial rural policies have not been included because this business has been sold and policies are actively being transferred out of the portfolio
Note 3: Other products include Marine, Travel, Pet, Liability, and Workers Compensation
15% underlying GWP growth
1
3

10
FY24: Continued improvement in MER
MANAGEMENT EXPENSE RATIO
1
Operational efficiencies
•Achieving scale with targeted premium growth
•Suva hub answering 55% of NZ sales and service calls
(FY23: 16%)
Streamlining the business
•Sale of Solomon Islands, Vanuatu and NZ commercial
rural portfolio
•Commission ratio
2
at 1.5%; down from 2.1%, partly due to
legacy portfolio

purchases and transition to referral
arrangements
Note 1:Calculated as management expenses and net commission expense divided by net insurance revenue
Note 2: Commission ratio for the comparative period has been restated due to adoption of IFRS17 which treats a portion of commission revenue as insurance revenue
Management expense ratio (MER) improved to 31.4%

11
FY24: BAU claims ratio significantly improves
Effective pricing and underwriting
•Targeted rating has reduced high-risk policies
•Rating for inflation, reinsurance, high motor theft
Faster and more efficient claims management
•Digital evolution: new motor assessing tool live, auto
allocation of online motor and house claims to repairers
•Number of open BAU claims down by 50%
•Turn around time decreased by 30%
External factors improved performance
•Calmer weather, easing inflationary pressures, and lower
motor theft frequency
BAU CLAIMS RATIO
1
Note 1:BAU claims are defined as those not part of a large event (large events are defined as having a cost to Tower of $2m or more, with lodged claims from two or more policyholders). BAU
claims ratio is calculated as BAU claims expense divided by net insurance revenue
Business as usual claims ratio improved to 48.1%

12
FY24: Delivering shareholder returns
A-
9.5c
C A P I T A L R E T U R N &
D I V I D E N D S
$81m
P r o p o s e d t o b e
r e t u r n e d t o
s h a r e h o l d e r s
A M B E S T
F I N A N C I A L S T R E N G T H
R A T I N G
F Y 2 4 F U L L Y E A R
D I V I D E N D P A I D
A f f i r m e d i n
A p r i l 2 0 2 4
212%
F Y 2 4 T O W E R P A R E N T
S O L V E N C Y
P o s t d i v i d e n d a n d
b e f o r e c a p i t a l r e t u r n
T O W E R S O L V E N C Y
1

N Z P A R E N T ( $ m )
N o n e p a i d i n F Y 2 3
Note 1:The 30 September 2024 solvency position was prepared in accordance with the RBNZ's Interim Solvency Standard, including the first amendment, which applied from 1 October 2023. The 30
September 2023 comparative was prepared in accordance with the RBNZ's Non-Life Solvency Standard, which was applicable until that date.

FY25 Q1 trading
update
For the three months to
December 31, 2024

14
39%
vs 57% in Q1 FY24
FY25 Q1 trading update
Strong BAU claims performance, operational efficiencies, and targeted growth
BAU claims ratio
(Business as usual)
MER
(Management expense ratio)
30%
vs 32% in Q1 FY24
Large event costs
$3m
vs $0m in Q1 FY24
Note 1: Excluding divested portfolios. GWP growth has been adjusted to exclude sold portfolios which include the Solomon Islands business and Vanuatu subsidiary, and the New Zealand commercial rural portfolio
Note 2: The solvency position disclosed is based on Tower’s initial interpretation of Interim Solvency Standard (ISS2) and has been reviewed by Tower’s Appointed Actuary. Due to the complexity of the requirements
within ISS2 and with insurance industry interpretations of these requirements continuing to develop, the final solvency position determined under ISS2 may be better or worse than that disclosed.
Financial information provided on this page is based on Tower’s unaudited management accounts as at 31 December 2024
GWP growth
(Gross written premium)
6% | $155m
vs $150m in Q1 FY24
310,000
vs 305,000 as at 30 Sep 24
Customers
1
187%
vs 176% as at 30 Sep 2024
Solvency ratio
2

15
Q1: Continued premium growth
Note 1: Excluding divested portfolios. GWP growth has been adjusted to exclude sold portfolios which include the Solomon Islands business and Vanuatu subsidiary, and the New Zealand commercial
rural portfolio
Financial information provided on this page is based on Tower’s unaudited management accounts as at 31 December 2024
GROUP GWP ($m)
•6%
1
GWP growth vs same period prior year
•Rate increases have slowed, volume growth increased
•5k customer growth in Q1 to 310k
•12% GWP growth in NZ House portfolio; 6% volume growth
•NZ retention at 78%(Q1 FY24: 78%)
1
•Risk-based pricing improving exposure; 92% of new business
policies rated ‘Low’ or ‘Very Low’ flood risk
NET MOVEMENT IN NZ RISKS BY QUARTER (‘000s)

16
Q1: Customer experience
•NPS improved to +41
•Sales & service contact centre abandonment rate reduced
to 7% (Q1 FY24: 9%)
•Active users of My Tower increased 4% to 170k from Sep-24
•7% increase in My Tower logins vs Q1 FY24
•Award winning service: 1
st
place Supreme Award for
Retention in the CRM Contact Centre Awards (NZ) in Sep-24
N E T P R O M O T E R S C O R E

17
Q1: Continued improvement in MER
MANAGEMENT EXPENSE RATIO
1
•Management expense ratio at 30%, down from 32%
•Achieving scale with targeted premium growth
•Suva hub answering 70% of NZ sales and service calls
•Digital transactions: 45% service, 60% sales, 66% claims
Note 1:Calculated as management expenses and net commission expense divided by net insurance revenue
Financial information provided on this page is based on Tower’s unaudited management accounts as at 31 December 2024

18
Q1: BAU claims ratio significantly improves
BAU CLAIMS RATIO
1
Note 1:BAU claims are defined as those not part of a large event (large events are defined as having a cost to Tower of $2m or more, with lodged claims from two or more policyholders). BAU
claims ratio is calculated as BAU claims expense divided by net insurance revenue
Financial information provided on this page is based on Tower’s unaudited management accounts as at 31 December 2024
•BAU loss ratio reduced to 39%
•Targeted rating has reduced high-risk policies
•External factors remain favourable with calmer
weather and lower inflation
•Internal assessing of motor claims increased to 94%
reducing assessment cost
•Digital journey: 53% of motor claims automatically
allocated to repair network
BAU CLAIMS RATIO BY QUARTER

19
Strong capital and solvency position
T O W E R S O L V E N C Y
1

N Z P A R E N T ( $ m )
•Tower expects to continue to have a solvency margin, after
the proposed capital return, that is in excess of both
regulatory requirements and internal targets
•RBNZ has issued a second amendment to the Interim
Solvency Standard (ISS2), effective from 1 March 2025
•ISS2 corrects issues in the previous solvency standard
•If ISS2 had been in place at 30 September 2024, the solvency
margin would have been $139.6m, rather than the $171.4m
that was reported
1
•Tower manages its capital position using an internal target
solvency margin that is greater than the minimum regulatory
solvency margin
Previous ISSPro forma ISS2
Note 1:The solvency position disclosed is based on Tower’s initial interpretation of ISS2 and has been reviewed by Tower’s Appointed Actuary. Due to the complexity of the requirements within
ISS2 and with insurance industry interpretations of these requirements continuing to develop, the final solvency position determined under ISS2 may be better or worse than that disclosed.

Looking forward
Paul Johnston

21
FY25 guidance and future targets
FY24
Actual
FY25
Guidance
FY27
Target
GWP growth
(excluding operations sold)
15%7% - 12%10% - 15%
Large events cost/allowance-$2.3m$50m
Management expense ratio31.4%< 29%< 26%
Combined operating ratio79%84% - 86%< 86%
Underlying NPAT
(assuming full utilisation of large events allowance)
$83.5m$60m - $70m
Return on equity
1
23%13% - 17%> 18%
Note 1: Return on equity is defined as reported net profit after tax divided by average closing book equity
•FY25 assumes full utilisation of $50m large event allowance. Any unused portion of the large events allowance at
year end will increase underlying NPAT, and improve the full year result
•Large events allowance used so far in FY25 is $3m for Dunedin Flood in October 2024
•The benefit to underlying NPAT from no further large events in FY25 would be an additional $34m ($47m less tax)

22
Focus on customer experience and targeted growth
•Enhancing risk-based pricing – landslide and sea surge
applied to renewal book and included in purchase journey
•New partnerships for further growth
•Motor policy growth through targeted risk approach
•Renewal journey uplift to increase retention

23
Continuous efficiency & process improvements
•Targeting 80% of all NZ sales, service, and claim
lodgement tasks to be digital by end FY27 (FY24: 45%)
•New house assessing system planned, reducing
assessment time and repair costs
•New contact centre platform planned to deliver frontline
efficiencies
•Remediation lessons applied to processes and systems
•Streamlining the business – exit from NZ commercial
rural portfolio completed
M A N A G E M E N T E X P E N S E R A T I O ( % N E P )
Targets

24
Fostering sustainability
Climate and community
•Parametric partnership with the UNCDF and CelsiusPro, global
insurtech
•FY24 Scope 1 and 2 emissions20% below FY20 baseline year
•Supporting university scholarships in New Zealand and Fiji
Our people
•Staff engagement score 8.1
•Gender pay equity gap 0.9%
1
•30% of Tower staff are members of representation groups
2
•Winner 2024 ANZIIF NZ Insurance Industry Awards Excellence in
Workplace Diversity, Equity & Inclusion
•Winner Fiji Prime Minister’s ‘Employer of the Year’ award
Note 1: Comparison of like-for-like roles for women and men at Tower (men are paid 0.9% more than women for the same role)
Note 2: Employee representation groups include groups for rainbow, Māori, women, physical & neuro diversity, wellbeing, and cultural diversity

Continued focus on strategic
delivery & strong performance
•Continuing to invest in customer experience
•Customer remediations, FMA proceedings and
implementing lessons
•Delivering profitable growth in targeted segments
•Continuous efficiency, digitisation and process
improvements
•Strong capital and solvency
•Investing in future resilience and sustainability
25

Shareholder resolutions
Michael Stiassny, Chairman

27
Shareholder resolutions
Resolution 1
•Authorisationfor Board to determine auditor remuneration
Resolution 2
•Re-election of Marcus Nagel as Director
Resolution 3
•Approval of capital return via a scheme of arrangement

Questions & general
business?

29
Disclaimer
This presentation has been prepared by Tower Limited to provide shareholders with information on Tower’s business. This
document is part of, and should be read in conjunction with an oral briefing to be given by Tower. A copy of this webcast of the
briefing is available at http://www.tower.co.nz/investor-centre/ It contains summary information about Tower as at 30
September 2024 and as at 31 December 2024 which is general in nature, and does not purport to contain all information a
prospective investor should consider when evaluating an investment. It is not an offer or invitation to buy Tower shares.
Investors must rely on their own enquiries and seek appropriate professional advice in relation to the information and
statements in relation to the proposed prospects, business and operations of Tower. The data contained in this document is for
illustrative purposes only. Past performance is not a guarantee of future performance and must not be relied on as such. The
information in this presentation does not constitute financial advice.
Forward looking statements
This document contains certain forward-looking statements. Such
statements relate to events and depend on circumstances that will occur
in the future and are subject to risks, uncertainties and assumptions.
There are a number of factors which could cause actual results and
developments to differ materially from those expressed or implied by
such forward-looking statements, including, among others: the
enactment of legislation or regulation that may impose costs or restrict
activities; the re-negotiation of contracts; fluctuations in demand and
pricing in the industry; fluctuations in exchange controls; changes in
government policy and taxation; industrial disputes; and war and
terrorism. These forward-looking statements speak only as at the date of
this document.
Disclaimer
Neither Tower nor any of its advisers or any of their respective
affiliates, related bodies corporate, directors, officers, partners,
employees and agents (other persons) makes any representation or
warranty as to the currency, accuracy, reliability or completeness of
information in this presentation. To the maximum extent permitted by
law, Tower and the other persons expressly disclaim any liability
incurred as a result of the information in this presentation being
inaccurate or incomplete in any way. The statements made in this
presentation are made only as at the date of this presentation. The
accuracy of the information in this presentation remains subject to
change without notice.