Tower Limited Annual Shareholder Meeting Materials

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
Incorporated in New Zealand
18 February, 2026
Tower reports positive four-month performance ahead of ASM
Kiwi and Pacific insurer, Tower Limited (NZX/ASX: TWR) today provides an update on its
trading performance for the four months ending 31 January ahead of its Annual Shareholder
Meeting.
Tower CEO, Paul Johnston, reports steady progress in the first part of the financial year.
“During the opening months of FY26, we have achieved continued strong growth in house
policies, and premium growth, while also advancing our focus on operational and digital
efficiencies alongside a continued low BAU claims ratio,” says Johnston.
“This performance reflects disciplined risk selection and pricing and is further supported by
ongoing investment in digital capabilities and modernised underwriting processes.”
Gross written premium (GWP) grew by 2% to $204m compared to the four months ending 31
January 2025. This was an increase from –1% GWP growth in the four months to 30
September 2025 which was impacted by lower pricing.
Tower's New Zealand policy numbers increased by 5%, largely driven by growth in house
and contents policies. Total customer numbers rose by 12,000 year‑on‑year to 323,000 as
of 31 January 2026. Two key growth initiatives are expected to go live in the second half of
FY26: the upcoming partnership with Westpac offering general insurance products to its
retail customers, and the referral of a back book which will see Tower offering insurance to a
portfolio of Kiwibank customers.
The BAU claims ratio of 43% was up from 38% in the prior comparable period and remains
favourable compared to long-run averages of between 48% and 50%. Tower expects the
BAU claims ratio to continue to increase but to remain below the long-term average this
financial year.
Tower’s ongoing claims transformation is supporting service and efficiency, with 53% of New
Zealand motor claims now progressing straight through to repairers (up 9%), and 74% of
motor claims being completed through Tower’s preferred repair partner network (up 5%).
Tower’s risk‑based pricing strategy continues to reduce portfolio exposure, with the
expected average annual loss from flood, landslide, and sea‑surge hazards down 20% on a
per‑policy basis and 14% overall compared to the same period last year.
The management expense ratio (MER) remained steady at 30.5%, compared with 30.1% in
the prior comparable period. Tower continues to invest in initiatives to lift efficiency and
customer experience, including our AI‑enabled contact centre platform, enhanced motor
assessing system integration, and streamlining of operations.

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
Incorporated in New Zealand
Tower continues to support customers through large events. Tower has a $45m large events
allowance for FY26 and in the first four months of the year recorded three large events with
an estimated combined cost of $12.1m. This includes the October windstorm, the Timaru
hailstorm in November, and the late January nationwide storm.
Claims from the stormy weather across New Zealand over the past few days are still being
assessed and at this early stage, Tower expects costs to exceed its $2 large events
threshold.
Tower has $32.9m available for the remaining eight months of the financial year. Any unused
portion of this allowance at year-end will contribute to underlying NPAT to improve the full
year result.
Financial information provided in this update is based on Tower’s unaudited management
accounts as at 31 January 2026.
Tower’s guidance for the year ending 30 September, 2026 remains unchanged.
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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Tower 2026 Annual Shareholder Meeting Address
18 February, 2026
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 Tote on Ascot 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, Naomi Ballantyne, Geraldine McBride and
Mike Cutter. And joining us via video conference is Marcus Nagel.
[PAUSE]
Also joining us in the room today, is our Chief Executive Officer, Paul Johnston, and our
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
Tote on Ascot 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 Paul, Angus 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 Paul’s presentation, 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, 498 shareholders, holding a total of
161,578,450 shares, have appointed proxies (including proxies instructed to abstain). The
appointed proxies represent 46.9% of valid securities voted.
In my capacity as Chairman of the meeting and in my own name I hold proxies for 369
shareholders, representing 157,334,560 shares, or 45.8% 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 climate statement, was made available on Tower’s
website on the 27
th
of November 2025.
I propose that we take the Annual Report, Climate Statement and Notice of Meeting as
read.
Slide 5 – Chairman’s update
It has been an exceptional year for Tower and its shareholders, but sadly this is my last ASM
as Chair.
A shareholder stopped me on the street recently and called me a traitor – Are you jumping
ship after a stellar year because the future is bad? he asked. NO.
I am going because I have been here for 12 years and the FMA, NZX, NZSA, RBNZ and proxy
managers would simply make a song and dance, questioning my independence moving
forward. And that would be detrimental for you and me as shareholders – something I do
not wish to happen.
[PAUSE]
Tower has been in turn around mode from its lowest point after the Christchurch earthquakes until
today. I must just say it took a bit longer than I would have liked.
But our hard fought and long running transformation has come of age with our FY25 results
demonstrating a business delivering value today while continuing to prudently build for tomorrow.
Following FY24’s result, we returned $45 million of capital to shareholders and then we declared
total dividends for FY25 of 24.5 cents per share.
This highlights two things:
Firstly, both I and the Tower Board firmly believe that shareholders must benefit from the
company’s success – a principle that, sadly, is often forgotten by many public company boards.
Secondly, it demonstrates Tower’s commitment to delivering consistent returns, supported by
sustainable profit growth and a robust capital and solvency position.

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It continually frustrates me that our share price does not reflect our success. It should. And as
shareholders, we all deserve to benefit from it.
However, before we get too carried away, we must all recognise that our FY25 dividend reflects an
underlying profit considerably boosted by the under-utilisation of our $50 million large events
allowance. While we have benefitted from this for the past two years, this situation won’t last
forever. One day we will have significant large events once again – it’s just a matter of time.
To counter this inevitability, our focus remains on controllable factors such as investing in our digital
platform, maintaining disciplined underwriting, innovating products and leveraging technology and
data to drive performance. Our goal is to continue building a business that is resilient, customer-
focused, and well-prepared for the future.
Tower has led the market with initiatives like announcing address-level risk-based pricing, enabling
lower premiums for low-risk customers while managing exposure effectively. Strategic partnerships
with Trade Me, Kiwibank and from mid-year Westpac, along with our refreshed brand campaign,
position us well for the future.
At the same time, we are investing in innovation, technology and AI to enhance efficiency, improve
customer experiences and ensure Tower remains competitive in a rapidly evolving market.
[PAUSE]
While we celebrate these achievements, in the wake of the tragic events at Mount Maunganui,
Papamoa and Warkworth, we face a chilling reality. Climate change is here, and it’s costing lives and
money. In recent years we have had multiple wake up calls and yet while at a national level some
progress has been made to address the impacts of extreme weather events, it has been haphazard,
inadequate and painfully slow.
Look back three years to the devastation wrought by Cyclone Gabrielle and the Auckland floods. Can
we honestly say that in the intervening period we have seen decisive action that will prevent loss of
life? Are we confident that we are no longer building on flood plains or on vulnerable coastlines
nationwide? Are we confident that we have active flood prevention measures in place that will
protect against more frequent and severe rain events? Are we confident that our infrastructure is
resilient and will cope with large storms that are no longer anomalies?
The answer is a resounding NO.
[PAUSE]

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Along with others, Tower has been sounding the alarm for years because insurers are in a unique
position and with that comes a unique responsibility.
Insurers are not just observers of climate change; we are enablers of resilience.
As I have banged on for years, every insurance company has access to the exact same data we do.
The industry as a whole knows – on a granular level – the specific risks each home and property
faces.
Central and local Government also have access to this exact same data. They keep talking about a
central register – well, it’s overdue. We must reach the point, immediately, where that information
becomes the bible, the single source of truth. Yes, it will mean Tower loses its competitive edge as
the only insurer that shares risk information directly with customers which, to be frank, was always
going to happen. But then we won’t be competing on data – we’ll be competing on service, on price,
on all the things that come down to how well we engage with the customer. And as management
knows, the key to a successful company is the customer – the customer – the customer. How well
Tower looks after them is what will drive our success.
[PAUSE]
Some of you probably never thought I would be a climate change crusader – but here I am. It’s here,
it’s real – it’s not some woke issue, of which there are plenty! – and it’s not simply an environmental
issue. Climate change is a financial issue. And, the problem I personally have – and where I part ways
with the do-gooders – is how do we actually deal with it? I simply don’t believe that climate
statements move the needle or cut the mustard.
Here’s something revealing that I read recently. The Financial Markets Authority has indicative data
showing that if New Zealand adopted Australia’s new climate reporting thresholds, currently being
phased in, only 11 of our existing 164 climate reporting entities would still be required to disclose.
The contrast is striking.
And, while we all have to be grateful that the upcoming increase in New Zealand’s market
capitalisation reporting threshold – from NZ$60 million to NZ$1 billion in March – will reduce the
number of reporting entities to around 76, we have to ask ... is that a sufficient reduction? Do we
have the right balance? My view remains, NO.
[PAUSE]
Finally, the Government has recently announced an insurance affordability review. It’s framed up
differently but to all intents and purposes echoes the banking and supermarket inquiries that left
many New Zealanders wondering how much change would ultimately follow.

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Tower is co-operating with the review. But let’s be very clear, when comparing FY24 to FY25,
Tower’s average sum of contents insured increased by between 1 and 1.5%, while the average
premium dropped by 6 to 8%.
The average premium renewal for Motor experienced sizable reductions in 2025, peaking at a 14%
reduction during the year. And while average house premiums peaked at a 4% increase at the
beginning of FY25, they have fallen steadily and dropped into negative territory since September.
The rate of premium increase is either on par with the sum insured increase or much lower.
In short, premiums have not climbed as much as some Ministers have said.
The real issue when it comes to insurance affordability is the cost of living more generally for Kiwis.
With costs of all goods and services spiralling up significantly more than incomes, it is inevitable that
some people are unable to afford insurance. That is the issue that needs to be addressed.
And let’s not forget FENZ and Natural Hazards Insurance levies make up roughly 40% to 43% of
insurance premiums ... over which we have no control.
[PAUSE]
In closing, I want to acknowledge all the Tower team past and present. My tenure as Chair has been
marked by working alongside a number of really talented, passionate people – I have enjoyed it and
am immensely proud of what we’ve achieved together.
Over to you Paul.
Slide 6 – CEO’s address title slide – Paul Johnston
Tēnā koutou katoa and thank you Michael.
A warm welcome to everyone joining us today. I am pleased to recap our full year 2025
results as well as share a performance update for the first four months of the 2026 financial
year. I will also take the opportunity to give you an overview of Tower’s plans for delivering
its next phase of growth.
Slide 7 – Delivering the next phase of growth
Let me begin with a brief recap of our strategy. Over FY24 and FY25, under Horizon 1, we
focused on strengthening Tower’s foundations: building resilience, improving efficiency,
carefully managing risk, and investing in technology to enhance our operations and
customer experience. We also continued to shape a culture that empowers our people and
sustains high performance over the long term.

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This work has put us on solid footing. With those foundations in place, and now being well
into Horizon 2, our focus has shifted more towards innovation and transformation -
leveraging our digital capabilities to accelerate growth and unlock the next phase of Tower’s
potential.
Slide 8 – FY25 performance – strong operational and business performance
And now to recap on our FY25 results, which demonstrate Tower’s strong operational and
business performance in the year to 30 September 2025.
Gross written premium increased to $600 million and customer numbers grew to
318,000. We also saw a substantial reduction in the BAU claims ratio, while the MER
remained stable and large event costs were low.
These factors combined led to a record underlying profit after tax of $107.2m.
Reported profit for FY25 was $83.7m.
Tower declared a total FY25 dividend of 24.5 cents per share, and also returned $45m of
capital to shareholders.
Slide 9 – FY24: External factors influencing financial result
FY25 was an exceptional year for Tower, supported by both favourable external conditions
and disciplined execution of our strategy. Large event claims were just $7.2 million — well
below the long-term average — and relatively benign weather helped moderate our BAU
claims ratio and overall profitability.
We saw solid policy growth, and average premiums declined through the year. This
reflected increased competition across the industry, a soft rating cycle, lower inflation, and
fewer claims from our lower-risk portfolio. We adjusted pricing quickly to stay competitive
and attract quality risks, providing welcome relief for customers after the increases seen
following COVID supply chain pressures and the 2023 weather events.
Inflation returned to historical levels, contributing to improved claims performance. Motor
theft frequency also normalised, following earlier steps to reduce exposure to high-theft
vehicles, improving both claim frequency and severity in our motor book.

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We did see some offsetting pressure from lower investment income as OCR reductions
came through.
Taken together, these factors, combined with progress in our transformation programme,
created a unique and favourable operating environment in FY25.
Slide 10 – FY25: Policy growth in a competitive market
Despite a soft rating cycle and intense competition, Tower delivered solid policy growth in
FY25. We added 13,000 new customers, lifting our total to 318,000, and achieved 6%
growth in New Zealand core products, including an 11% increase in house policies.
This reflects our strategic focus on the house portfolio, where customers typically hold more
products and stay longer. Prioritising this segment strengthened retention and profitability.
Growth also came with better risk quality. Our risk-based pricing approach means we’re
growing in lower-risk customers, reducing expected average annual flood losses by 21% per
policy and 16% across the portfolio, a meaningful lift in portfolio resilience.
We further strengthened brand momentum with the launch of “The Misses” campaign,
which resonated well with New Zealanders and won Kantar’s Ad Impact Award in June 2025.
The graphs clearly show this shift: house policies have grown steadily over five years,
accelerating in FY25, while motor has returned to growth following risk appetite
adjustments made in late FY23.
Overall, these results reflect a disciplined strategy to attract high quality risks and build a
stronger, more resilient portfolio.
Slide 11 – FY25: Investing for future value
In FY25, we continued to leverage the benefits of our single core platform, our streamlined
product set and our increased scale to invest in strategic initiatives designed to improve
efficiency, strengthen customer experience, and support long-term growth.
We also launched our AI-enabled contact centre platform, Amazon Connect, which is
already showing significant improvements in customer service and streamlined delivery.
And, we introduced an integrated motor claims assessing system that is speeding up
assessments, reducing manual handling, and lowering repair costs.

10

Our digitisation programme is nearly complete for this phase, with 79% of tasks now
available online, making policy management and claims lodgement faster and easier for
customers.
We also expanded risk-based pricing to include two additional perils and continued to build
our AI capability, important steps toward greater efficiency and innovation in FY26 and
FY27, and beyond.
This continued focus on innovation was recognised with the Insurance Business 5 Star
Insurance Innovator Award for the second consecutive year.-Star Insurance Innovator
Award for the second consecutive year.
Slide 12 – FY25: Elevating customer experience
Delivering simple and rewarding experiences remained a core focus in FY25, and we made
solid progress. Our Net Promoter Score increased to +44, supported by digitisation and
operational improvements. Telephony performance also improved, with abandonment
rates down to 7% as we streamlined processes and strengthened digital capability.
Digital adoption continued to rise during FY25: 63% of sales, 51% of service tasks, and 70%
of claims lodgements in New Zealand were online, and My Tower registration grew to 59%.
Our Suva Hub also delivered greater efficiency, scaling up to handle 83% of sales and service
calls, compared with 55% last year.
These improvements were recognised externally, with Tower winning the Insurance Sector
Award at the 2025 CRM Contact Centre Awards.
Slide 13 – Sustained profitability improvement
This chart illustrates Tower’s performance over the five years to FY25, during which we
delivered consistent and sustainable improvements in underlying profitability through
disciplined execution and targeted investment.
When large event costs are removed, the underlying trend becomes clear: underlying NPAT
strengthened each year, reflecting the cumulative impact of the changes made across the
business.
Profitability in the latter part of this period was also supported by particularly benign BAU
claims conditions in FY24 and FY25.

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For FY26, our guidance remains underlying NPAT of $87–$97 million, excluding large events.
This assumes the soft rating cycle continues and BAU claims ratios begin normalising.
Slide 14 – Four-month trading update
Turning now to our trading performance for the first four months of our 2026 financial year
which continues to feature solid operational and business performance.
Slide 15 – FY26 four-month trading update
Here is a summary of our steady progress in the first part of the financial year. The financial
information provided in this update is based on Tower’s unaudited management accounts
as at 31 January 2026.
Slide 16 – FY26: Stabilised pricing and increased policy volumes underpin positive GWP
growth
Turning now to GWP, we’ve seen positive momentum in our New Zealand portfolio in the
first four months, with policy numbers up 5% compared with January last year. This has
been led by continued growth in house policies, which were up 10%, alongside 6% growth in
contents and 2% in motor.
Gross written premium grew 2% to $204 million. An increase from the 1% decrease we saw
in the four months to September, which was impacted by lower pricing. The improvement
reflects disciplined risk selection, stabilised pricing, and the continued appeal of our
offering.
We added 12,000 new customers in the year to 31 January, taking total customers to
323,000. And our new Westpac partnership and the Kiwibank back‑book referral will both
go live in the second half, further supporting policy and premium growth as the year
progresses.
The charts on the right show that GWP growth is returning to a more sustainable trajectory
as we continue to deliver growth initiatives and the rating environment stabilises. The
effective average premium curves have flattened, reflecting a more balanced market after
two years of significant movement.
The insurance industry remains highly competitive, and we are committed to earning every
customer by delivering value through our products, service, benefits and being there at

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claim time when our customers need us the most. Our progress is also underpinned by
ongoing investment in digital and underwriting capabilities, from
straight‑through‑processing for motor claims to enhancements in our pricing and risk‑based
models.
Slide 17 – FY26: BAU claims ratio remains below historical average
Turning to claims performance, our BAU claims ratio for the first four months remains
favourable at 43%, compared to long-run averages of between 48% and 50%.
As we noted at the full‑year results, the premium rate decreases that came through in FY25
will continue to earn through during FY26, and this is contributing to the gradual
normalisation we’re seeing here.
We expect the BAU claims ratio to continue to increase but to remain below the long-term
average this financial year.
Our claims transformation programme continues to deliver improvements, particularly in
motor. Over the period, 53% of New Zealand motor claims went straight through to
repairers and utilisation of our preferred partner network increased to 74%. These gains are
helping to reduce handling times, lower costs, and improve customer experience.
Slide 18 – FY26: Large event claims
Paying claims is what we are here for, and large events are a part of that.
Tower has a $45m large events allowance for FY26 and in the first four months, has
recorded three large events with an estimated combined cost of $12.1m. This includes the
October windstorm, the Timaru hailstorm in November, and the late January nationwide
storm.
Claims from the stormy weather across New Zealand over the past few days are still being
assessed and at this early stage, Tower expects costs to exceed its $2m large events
threshold.
Tower has $32.9m available for the remaining eight months of the financial year. Any
unused portion of this allowance at year-end will contribute to underlying NPAT to improve
the full year result.

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Our response to these events continues to improve as our capability strengthens while the
impacts are reducing. Tower’s risk-based pricing is lowering our exposure to natural
hazards, with the expected average annual loss from flood, landslide, and sea surge down
by an average of 20% on a per-policy basis and 14% overall compared to the same time last
year. This continues to strengthen portfolio resilience and reduce volatility.
We also continue to enhance the customer experience during events. For the January storm,
we sent more than 23,000 automated SMS updates to affected customers, helping keep
people informed at a time when communication matters most.
Digital lodgement and straight-through processing are also helping customers lodge claims
more easily and getting motor and house repairs underway faster.
And where required, we can scale quickly through our third party assessor and claims
management partners to ensure we maintain quality and pace during periods of higher
demand.
The map on the right highlights the geographic spread and volume of claims across the
three events within the four-month period.
Slide 19 – FY26: Investing to improve efficiency and customer experience
We continue to invest in digital capability and operational transformation to deliver simple
and rewarding customer experiences and drive sustainable efficiency gains across the
business.
Our net Promoter Score increased to +52, up from +44 in September, reflecting
improvements across digital channels, the telephony platform, and claims processes.
Amazon Connect, launched at the end of FY25, has reduced average call times by around
two minutes and is streamlining customer interactions.
Two way integration of the motor assessing platform is reducing manual effort for our
people and improving accuracy. During the period, 24% of New Zealand motor claim
reserves were automatically updated, and 46% of motor claim payments were automatically
processed.
We have streamlined our geographical operations to improve consistency and resource
allocation.

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We also continue to invest in systems and processes to help avoid errors that lead to
customer remediations. Our comprehensive multi‑policy discount remediation programme
is now nearing completion, and as part of simplifying our pricing and reducing future risk,
we have removed the multi‑policy discount from our insurance offerings. This change is
allowing us to offer targeted rate reductions across our core products.
The Financial Markets Authority’s regulatory action regarding the misapplication of multi-
policy discounts was concluded in the first four months of the year. The penalty was fully
provided for in Tower’s past financial results and will therefore have no impact on Tower’s
FY26 results. This resolution allows us to move forward with clarity of future costs. Our
focus remains on continuous improvement and delivering value to customers through fair
and competitive pricing.
The management expense ratio was 31%, marginally higher than the prior comparable
period, reflecting disciplined cost management alongside continued investment in efficiency
and service initiatives.
Slide 20 – Solvency remains strong
Tower remains well capitalised with a strong solvency margin well above both regulatory
requirements and our internal targets.
The solvency ratio was 160% as at 31 January 2026, up from 143% at 30 September 2025.
The adjusted solvency margin increased to $121.1 million at 31 January 2026, an
improvement of $32.1 million from September. Tower’s internal target solvency margin
remains $84.3 million.
The final FY25 dividend of 16.5 cents per share was paid in January 2026.
Tower continues to hold an A- financial strength rating.
Slide 21 – Looking forward
Looking forward we will continue our focus on strategic growth initiatives and improving
customer experience and efficiency through innovation.
Slide 22 – Strategic growth initiatives

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We have a clear set of strategic growth initiatives in place to accelerate performance
through Horizon 2 and beyond, with a target of delivering more than $750 million in GWP by
FY28 through organic growth.
Our new digitally enabled partnership with Westpac NZ will open Tower up to one of the
country’s largest retail customer bases, supported by seamless digital onboarding and
modernised underwriting.
The referral of the Kiwibank back book in the second half of FY26 will help to further
support growth.
We also note that Trade Me has commenced a review of its insurance partnership in 2026.
While we are not able to elaborate on the process at this stage, Trade Me remains an
important channel in the New Zealand insurance market, and we will continue to participate
constructively as this review progresses.
We are also investing further in Tower’s brand to support growth — strengthening
awareness, improving consideration, and ensuring we show up consistently as a modern,
customer focused insurer.
Enhancements to our seasurge and landslide risk ratings continue to sharpen our risk-based
pricing, helping us target lower risk properties more effectively and improve portfolio
quality.
And by removing multipolicy discounts, we’ve simplified our pricing structure, to help
ensure we are competitive for customers.
Slide 23 – Customer experience and efficiency through innovation
We’re focused on continuing to lift customer experience and efficiency with continued
improvements across our digital platforms through streamlined processes and clever use of
data and AI.
We’re targeting 80% of sales, service, and claims lodgement tasks to be completed through
digital channels by FY28. This shift will create faster, more intuitive experiences for
customers while driving efficiency gains.

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Work is also underway on a new customer data platform that will enable more personalised
service over time, allowing us to tailor communications, offers, and support based on
individual customer needs.
New AI tools are being introduced across key processes to streamline workflows, reduce
manual effort, and improve accuracy. This will become an increasingly important capability
as we scale.
Our partnership with Amazon Connect is already enabling enhancements to our contact
centre platform, supporting smarter routing, more efficient interactions, and deeper
insights to further improve service.
And we continue to focus on product innovation to meet emerging customer needs,
ensuring Tower remains competitive and relevant as risks evolve.
Together, these initiatives position us to deliver a more personalised, more digital, and more
efficient customer experience, and will help us to drive down our management expense
ratio, aligned with the ambitions of Horizon 2 of our strategic plan.
Slide 24 – FY26 guidance and future targets
For FY26, we are maintaining guidance consistent with what was communicated at the
full‑year results.
We are targeting Gross Written Premium of between $630 million and $660 million,
representing 5% to 10% growth.
The management expense ratio is expected to remain in the 31% to 32% range this year.
Underlying NPAT, excluding large events, is forecast to be between $87 million and $97
million. Our large events allowance for FY26 is $45 million.
We are targeting a combined operating ratio of 86% to 88%.
Assuming full utilisation of the large events allowance, underlying NPAT is expected to be
between $55 million and $65 million. Any unused portion of the allowance, after tax, will
flow through to improve the full‑year result.
Reported NPAT will continue to have non‑underlying costs related to ongoing remediation
activity and regulatory change.

17

Looking ahead to FY28, we have reaffirmed our medium‑term targets.
As the insurance cycle stabilises and strategic initiatives deliver, we expect GWP to reach
more than $750 million, implying a three year compound annual growth rate (or CAGR) of
over 7.5%.
Our customer experience, innovation and efficiency gains are expected to deliver an MER of
28% to 30% in FY28, and the combined operating ratio is targeted to land between 85% and
87%.
These targets reflect confidence in our strategy and the momentum we are building through
Horizon 2.
Slide 25 – A journey of progress and transformation
Before I hand back to Michael, I want to reflect on what Tower has achieved during his
tenure as Chair.
Over this period, Tower has reshaped itself into a modern, digital, direct insurer —
simplifying products, embedding address-level risk‑based pricing across four major perils,
investing in claims and digital platforms, and building a stronger, more resilient portfolio.
We have navigated major events across New Zealand and the Pacific, supported
communities when it mattered, and delivered operational and financial progress.
We’ve prepared a short video that captures these milestones—more than a decade of
progress we’re proud of.
[Play video]
Those results speak for themselves. Thank you, Michael—for your wise counsel, steady
chairmanship, clear strategic guidance, your challenge, and unwavering focus on long‑term
value for customers and shareholders. Your leadership has helped set the platform we are
building from today.
On a personal note, thank you for the support you’ve shown me and the executive team.
Tower is well‑positioned for the next phase—with a clear strategy, high-performing culture,
modern capability, and significant growth opportunities ahead.
Slide 26 - Shareholder Resolutions – Michael Stiassny

18

Thank you, Paul, very kind.
I now propose that we move to the next item of business, which is the shareholder
resolutions before the meeting. Resolutions 1, 2 and 3 are ordinary resolutions, each passed
by a simple majority of votes of those shareholders entitled to vote and voting on the
relevant resolution.
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 in this role 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 2026 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.

19

I note that a tender process was carried out in FY25, with proposals submitted by four audit
firms. At the conclusion of this process, the Board resolved to retain PwC as Tower’s
external auditor. Additionally, our Lead Audit Partner rotated two years ago. 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 Geraldine McBride as Director of Tower Limited.
Geraldine McBride retires by rotation, and being eligible, offers herself for re-election. I now
invite Geraldine to address this meeting on her proposed re-election.
[GERALDINE MCBRIDE ADDRESS]
Thank you, Geraldine. I will now move that Geraldine McBride, 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 - Re-election of Naomi Ballantyne as Director of Tower Limited.
Naomi Ballantyne was appointed as an independent director to the Tower Board effective
21 May 2025, to fill a casual vacancy. As required by Tower’s constitution, Naomi retires,
and being eligible, offers herself for re-election. I now invite Naomi to address this meeting
on her proposed re-election.
[NAOMI BALLANTYNE ADDRESS]
Thank you, Naomi. I will now move that Naomi Ballantyne, 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?
That concludes our discussion on the items of business.

20

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.
[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. I’d like to thank
you, not only for your participation today, but for your support of a company that continues
to deliver for both shareholders and customers. It has been an honour to serve, and I shall
remain an active and interested shareholder.
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
2026
18 February 2026

Questions
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
2

Voting process
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’.
3

AGENDA
Chairman’s address
Michael Stiassny,
Chairman
CEO address
Paul Johnston,
Chief Executive Officer
Shareholder resolutions
Questions & general
business
Michael Stiassny,
Chairman
4

Competitive advantages set Tower apart
•Single core digital platform with address level risk-based pricing
•Digital enabled strategic partnerships and brand momentum underpin future growth
•Investing in innovation, technology and AI
Chairman’s address
Tower delivers record FY25 performance and positions for future growth
Strong, resilient business delivering shareholder value
•Capital return of $45m delivered
•Final dividend declared 16.5 cents per share; full year dividends of 24.5 cents per share – fully
imputed
•Shareholder returns supported by sustainable profit growth
•Strong capital and solvency
5
Supporting customer affordability
•Average premiums reduced in FY25 across core products

CEO’s
address
Paul Johnston,
Chief Executive
Officer
6

Delivering the next phase of growth
Foundations laid to deliver Horizons 2 and 3
E x p a n d e d G r o w t h a n d
L e a d e r s h i p
T r a n s f o r m a n d
I n n o v a t e
R e s i l i e n c e a n d
E f f i c i e n c i e s
We are
entering
Horizon 2 of
our strategic
plan
H O R I Z O N 1
2 0 2 4-2 0 2 5
•Building foundational strength
•Well-managed risk exposure
•Operational efficiencies
•Technology investments
•Improving customer experience
•Effective and distinctive culture
H O R I Z O N 2
2 0 2 6 - 2 0 2 7
•Sustainable growth
•Leading customer experience
•Investment in customer data,
digitisation, and innovation
•Embedding AI
•Consistently improving earnings
H O R I Z O N 3
2 0 2 8 - 2 0 3 0
•Broadening growth through new
channels and innovative
products
•Market challenger  market
leader
•Leading brand
•Highly automated/digital
•Personalised customer
experiences
7

FY25 performance
Strong operational and business performance
24.5 cents
41%
vs 48% in FY24
BAU claims ratio
(Business as usual)
MER
(Management expense ratio)
31.4%
vs 31.4% in FY24
Large event costs
$7.2m
vs -$2.3m in FY24
Reported profit
$83.7m
vs $74.3m in FY24
Note 1: Excluding divested portfolios which include the Solomon Islands business and Vanuatu subsidiary, and the New Zealand commercial rural portfolio
Note 2: Large event costs were negative in FY24 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)
2% | $600m
vs $595m in FY24
$107.2m
vs $83.5m in FY24
Underlying profit
318,000
vs 305,000 at FY24
Customers
2
3
Dividend per share
Total FY25 declared dividends
vs 9.5 cents, $45m capital
return announced in FY24
1
8

•Large event claims costs of $7.2m well
below historical 10-year average of $15m
•Competitive environment improving
customer affordability
•Inflation now at historical averages
•Motor theft frequency back to pre-Covid
levels
•OCR decrease reduces investment income
yields
FY25: External factors influencing financial result
TOWER TOTAL CLAIMS RATIO
•Effective average premium highlights impact of change in technical premium, excesses, and
sum insured on GWP
TOWER EFFECTIVE AVERAGE PREMIUM
(ANNUAL CHANGE)
9

FY25: Policy growth in a competitive market
•+13k new customers to 318k
•6% growth in NZ policies (house 11%, motor 2%,
contents 7%)
•Strategic focus towards house is providing
results
•Improved risk quality - Tower's expected
average annual loss from flood reduced 21% on
a per policy basis and 16% overall
•New brand campaign “The Misses” launched
winning Kantar’s June 2025 Ad impact award
NZ HOUSE MOVEMENT IN RISK COUNT (000’s)
NZ MOTOR MOVEMENT IN RISK COUNT (000’s)
10

FY25: Investing for future value
One core digital platform and simplified core
product set enables technology enhancements:
•Launched Amazon Connect - AI enabled
contact centre platform, streamlining
processes and reducing frontline effort
•Integrated motor assessing system - reducing
assessment time, manual effort on claims
handling, and repair costs
•Digitisation build nearing completion – digital
service capability at 79%
•Risk based pricing enhancements - Landslide
and sea surge delivering improved risk quality
•AI enablement – strengthened foundations to
deliver AI efficiencies across FY26-FY27
11

FY25: Elevating customer experience
•Net promoter score improved to +44 (FY24: +38)
•Sales and service abandonment rate reduced
by 1% to 7%
•Digital efficiency: New Zealand digital tasks¹ –
63% sales, 51% service; 70% claims lodgement
•59% of NZ customers registered for MyTower
(FY24: 53%)
•Suva Hub answering 83% of NZ sales and
service calls (FY24: 55%)
•CRM Contact Centre Awards (NZ): Insurance
sector award winner 2025
Note 1: Sales tasks are all New Zealand new business policies sold online (previously reported as Tower Direct only). Service tasks are either digital (actioned by the customer through the My Tower portal online) or assisted
(through Tower’s call centre). In prior years, multiple tasks completed on the same call were reported as one assisted transaction - these are now reported individually. Digital claims tasks refer to claim lodgement only.
.
12

Sustained profitability improvement
•Through-the-cycle (FY21 – FY25) profitability has
increased through business improvements:
•Targeted growth enabling scale
•Risk selection and risk-based pricing improvements
(Flood, Sea Surge, Landslide)
•Expense efficiencies from technology & Suva Hub
•Foundational risk and resilience improvement
•Assisted by benign BAU claims experience in last two
years
•FY26 guidance assumes soft rating cycle continues and
normalisation of BAU claims ratio
UNDERLYING NPAT
EXCLUDING LARGE EVENTS¹
Note 1: The net cost to Tower of large event costs after tax for each financial year is as follows: FY21 $10m, FY22 $13.3m, FY23 $40.1m, FY24 -$1.6m, FY25 $5.2m
13

Four-month
trading
update
For the four months to January 31, 2026
14

FY26 four-month trading update
Strong operational and business performance
43%
vs 38% in Jan 2025
BAU claims ratio
(Business as usual)
MER
(Management expense ratio)
30.5%
vs 30.1% in Jan 2025
Large event costs
$12.1m
vs $3.1m in Jan 2025
GWP growth
(Gross written premium)
2% | $204m
vs $200m in Jan 2025
323,000
vs 311,000 in Jan 2025
Customers
Solvency ratio
160%
vs 143% as at Sep 2025
15

FY26: Stabilised pricing and increased policy
volumes underpin positive GWP growth
•5% growth in NZ policies (house 10%,
contents 6%, motor 2%)
•2% GWP growth vs same period prior year
•12,000 new customers compared to 31
January 2025
•Rating environment has stabilised
•Westpac partnership and Kiwibank back
book go live in H2 FY26
TOWER EFFECTIVE AVERAGE PREMIUM
(ANNUAL CHANGE)
GWP GROWTH (4 MONTH ROLLING)
16

FY26: BAU claims ratio remains below
historical average
•BAU claims ratio increased to 43% but remains
well below historical average of 48%-50%
•Premium rate decreases in FY25 will continue to
increase the BAU claims ratio as new rates earn
through
•Claims transformation continuing to deliver
improvements:
•53% of NZ motor claims went straight
through to repairer (+9%)
•74% utilization of preferred partner network
(+5%)
BAU CLAIMS RATIO
17

FY26: Large event claims
FY26 events
•FY26 large event costs to date of $12.1m; 3 events
•$45m large event allowance - $32.9m available for
remaining 8 months
Large event response
•Tower's expected average annual loss from flood,
landslide and sea surge reduced 20% on a per policy
basis and 14% overall vs same period last year
•Customer response; automated SMS messaging to
affected areas, 23k sent for January event
•Digital lodgement and straight through processing
improves response times to customers
•Scalability through third party claim managers and
assessors when required
18
Claims reported as at 31 January 2026 where >40 claims reported per region per event

FY26: Investing to improve efficiency and
customer experience
•NPS improved to +52
•Amazon Connect (launched end of FY25) has
significantly reduced average call time - down by 2
minutes
•Two-way integration of motor assessing platform
(launched end of FY25) reducing manual effort:
•24% of NZ motor claim reserves were
automatically updated (vs 0% in FY25)
•46% of NZ motor claim payments were
automatically processed (vs 0% in FY25)
•Streamlined geographical operations
NET PROMOTER SCORE
MANAGEMENT EXPENSE RATIO
19

FY26: Solvency remains strong
•Tower had an estimated¹ solvency ratio of 160%
as at 31 January 2026; an increase from 143% as
at 30 September 2025
•Adjusted solvency margin as at 31 January 2026
was $121.1m, an increase of $32.1m from 30
September 2025
•Tower has an internal target solvency margin of
$84.3m
•Final FY25 dividend of 16.5 cents per share paid
in January 2026
•A- financial strength rating
TOWER SOLVENCY
NZ PARENT ($m)
Note 1: Solvency is based on unaudited management accounts as at 31 January 2026. This has been reviewed by the appointed actuary
20

Looking
forward
21

•Targeting >$750m GWP in FY28 through organic growth
•Digital enabled partnership agreement with Westpac NZ
•Referral of Kiwibank back book
•Investing further in Tower brand marketing
•Sea surge and landslide risk ratings improve targeting of lower
risk properties
•Multi-policy discount removal simplifies pricing offering
Strategic growth initiatives
22

Customer experience and efficiency
through innovation
•Targeting 80% of sales, service, and claims lodgement
tasks to be through digital channels by FY28
•Customer data platform to enable hyper-personalised
service in future
•AI enablement roll out to streamline processes
•Partnership with Amazon Connect enabling best-in-
class enhancements to new contact centre platform
•Product innovation to meet emerging customer needs
23

FY26 guidance and future targets
•Any unused portion of the large events allowance (after tax) at year end will increase underlying
NPAT to improve the full year result.
•Reported NPAT will be impacted by non-underlying items for remediation activity and costs
associated with regulatory change
FY25
Actual
FY26
Guidance
FY28
Target
GWP growth
$600m
(2%)
$630m - $660m
(5-10%)
>$750m
(>7.5% CAGR)
Management expense ratio31.4%31% - 32%28% - 30%
Underlying NPAT
(excluding large events)
$112m$87m - $97m
Large events$7m$45m
Combined operating ratio74%86% - 88%85% - 87%
Underlying NPAT
(assuming full utilisation of large events allowance in FY26)
$107m$55m - $65m
24

A journey of progress and transformation
25

Shareholder
resolutions
Michael Stiassny,
Chair
26

Shareholder resolutions
Resolution 1
•That the Board be authorised to determine the auditor’s fees and expenses for the 2026 financial
year.
Resolution 2
•That Geraldine McBride, who retires by rotation in accordance with NZX Listing Rule 2.7.1, be re-
elected as a Director of Tower.
Resolution 3
•That Naomi Ballantyne, who retires in accordance with NZX Listing Rule 2.7.1, be elected as a
Director of Tower.
27

Questions?
28

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 2025 and 31
January 2026 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.
Disclaimer
29