Tower reports strong HY earnings

21 May 2026
Tower Limited
Half Year 2026 Results for Announcement to Market
In accordance with NZX Listing Rule 3.5.1 we enclose the following for release to the market in relation to Tower
Limited’s (NZX/ASX: TWR) Half Year 2026 Results:

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

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

ENDS

This announcement has been authorised by the Tower Board.

Paul Johnston
Chief Executive Officer
Tower Limited

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

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

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

---

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
Incorporated in New Zealand
21 May, 2026
Tower reports strong HY earnings
Kiwi and Pacific insurer Tower Limited (NZX/ASX: TWR) today announced a solid underlying
profit performance for the half year ended 31 March 2026, delivering underlying net profit
after tax (NPAT) of $36.8 million and a reported profit of $22.9 million. The Tower Board has
declared a fully imputed interim dividend of 5c per share.
This positive HY26 result was delivered in a more challenging operating environment,
marked by pricing pressure, elevated weather-related claims activity and global volatility.
Tower does not expect these economic conditions to improve in the second half.
Against this backdrop, Tower has continued to grow its customer base and advanced its
strategic initiatives to drive future value.
The result reflects Tower’s positive long-term earnings trajectory, but compares against an
exceptionally strong prior-year half, which benefited from unusually benign weather
conditions and favourable claims experience. As previously communicated to the market at
Tower’s FY25 full-year results, earnings in FY26 are expected to be lower than the prior year.
Reported profit reflects adjustments for ongoing customer remediation costs, largely driven
by a now-resolved historical discount error that primarily affected policies in a legacy
system. Other costs include streamlining Tower’s operational footprint and a software
impairment.
HY26 key results:
• Underlying NPAT: $36.8m (HY25: $61.7m)
• Reported profit: $22.9m (HY25: $49.7m)
• Gross written premium (GWP): $301m, up 1%
• Customer numbers: 327,000, up 5% year-on-year
• BAU claims ratio: 44% (HY25: 38%)
• Management expense ratio (MER): 31% (HY25: 30%)
• Large event costs: $18.5m (HY25: $3m)
• Half year dividend: 5c per share

Tower CEO Paul Johnston says, “Over the 12 months to 31 March, we welcomed 15,000 new
customers to Tower, with continued strong growth in house policies despite a subdued
economic environment. Competitive pricing is supporting customer affordability and growth,
while our expanded risk-based pricing is strengthening portfolio quality and reducing
exposure to weather-related impacts.

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
Incorporated in New Zealand
“Continued digital and operational initiatives, including our AI-enabled contact centre and
claims process improvements, are improving efficiency and supporting sustainable
profitability through the cycle.”
Continued growth in home insurance portfolio
Tower’s customer base increased 5% year-on-year to 327,000, driven primarily by growth in
New Zealand home insurance policies, which grew 9%, reinforcing the company’s strategic
focus on the house portfolio.
GWP growth of 1% was constrained by lower average premiums, driven by growth in low risk
properties which attract lower pricing, and increased competition. This was partially offset by
increased policy volumes. Over 90% of new house policies sold during the half were
assessed by Tower as Low or Very Low risk for flood, sea-surge and landslide - reflecting the
expansion of Tower’s risk-based pricing in 2025.
Two key growth initiatives will commence in the second half of FY26: a partnership with
Westpac to offer general insurance products to its retail customers, and a back-book referral
arrangement enabling Tower to offer insurance products to a group of Kiwibank customers.
Claims and operational performance
The BAU claims ratio increased to 44% from the unusually low 38% reported in the prior
comparable period, reflecting targeted rate decreases and increased storm activity. The
ratio remains favourable relative to long-run averages of between 48% and 50%. Tower
expects it to continue to trend upward through the remainder of the financial year while
remaining below long-term averages.
The MER increased to 31% compared to the prior comparable period, reflecting the soft
premium cycle and continued investment in technology and growth initiatives.
Large event costs
Tower maintains a $45 million large event allowance for FY26 and recorded four large
events in the first half, with an estimated combined cost of $18.5 million.
The Wellington flooding event in April 2026 will be recorded as a large event in the second
half of the year, with an estimated cost of $5 million.
Approximately $21.5 million of the large event allowance remains available for the balance
of FY26. Any unused portion at year-end (after tax) will contribute to underlying NPAT.
Updated FY26 GWP guidance
GWP is now expected to grow by low-single digits, down from 5%-10%, due to lower
average premiums, and subdued market conditions. Tower continues to expect underlying
NPAT to be in the range of $55 million to $65 million, assuming full utilisation of the $45
million large event allowance. While benefits from digitisation and efficiency initiatives are

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
Incorporated in New Zealand
expected to continue to emerge, ongoing investment in growth, technology and customer
experience is anticipated to keep the MER between 31% and 32%.
Ends
This announcement has been authorised by Tower Limited Board Chair, Naomi Ballantyne.
For media enquiries, please contact:
Emily Davies
Head of Corporate Affairs and Sustainability
+64 21 815 149
emily.davies@tower.co.nz

For investor enquiries, please contact:
James Silcock
Head of Strategy, Planning and Investor Relations
+64 22 395 9327
James.silcock@tower.co.nz

---

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

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

Results for announcement to the market
Name of issuer Tower Limited
Reporting Period 6 months to March 2026
Previous Reporting Period 12 months to September 2025
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$291,169 -2%
Total Revenue $291,169 -2%
Net profit/(loss) from
continuing operations
$22,855 -54%
Total net profit/(loss) $22,855 -54%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.05000000
Imputed amount per Quoted
Equity Security
$0.01944444
Record Date 11 June 2026
Dividend Payment Date 25 June 2026
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.68 $0.76
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The decrease in revenue is due to customer remediation
payments which are deducted from revenue, as well as lower
average premiums in comparison to the comparative period.
Underlying policy and customer growth was positive.

The decrease in profit reflects a normalisation of both BAU
claims and large event claim costs in comparison to the
comparative period which experienced an unusually low level of
claims caused by benign weather. Profit was also impacted by
lower net investment income due to current economic factors as
well as increased provision for customer remediation payments
noted in revenue above.

Authority for this announcement
Name of person

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

21 May 2026

---

Tower Limited
Consolidated
interim financial statements
for the half year ended 31 March 2026

Tower Limited
Consolidated interim financial statements
Interim Financial Statements
Consolidated statement of comprehensive income2
Consolidated balance sheet3
Consolidated statement of changes in equity4
Consolidated statement of cash flows5
Notes to the interim financial statements
1 Overview6
1.1 About this report6
1.2 Critical accounting judgements and estimates7
1.3 Impact of new accounting standards7
1.4 Segmental reporting8
2 Insurance and reinsurance contracts10
2.1 Insurance and reinsurance contracts10
2.2 Reconciliation of insurance assets and liabilities11
2.3 Reconciliation of reinsurance assets and liabilities13
3 Investments14
3.1 Investment income14
3.2 Investments14
4 Risk Management15
4.1 Capital management risk15
5 Capital structure16
5.1 Contributed equity16
5.2 Earnings per share16
5.3 Dividends16
6 Other balance sheet items17
6.1 Intangible assets17
6.2 Provisions18
7 Other information19
7.1 Notes to the consolidated statement of cash flows19
7.2 Contingent liabilities19
7.3 Capital commitments19
7.4 Subsequent events19
1

Tower Limited
Consolidated statement of comprehensive income
For the Half Year Ended 31 March 2026
$ thousandsNote 31-Mar-2631-Mar-25
Insurance revenue291,169 295,820
Insurance service expense(229,542)(194,087)
Insurance service result before reinsurance contracts held61,627 101,733
Net expense from reinsurance contracts held(31,545)(40,928)
Insurance service result30,082 60,805
Investment income3.15,337 10,129
Investment expense(220)(153)
Net investment income5,117 9,976
Finance expense from insurance contracts issued(474)(1,430)
Finance income from reinsurance contracts held51 392
Net insurance finance expense(423)(1,038)
Net insurance and investment result34,776 69,743
Other income691 2,131
Other operating expenses(2,910)(1,309)
Finance costs(311)(397)
Profit before taxation from continuing operations32,246 70,168
Tax expense(9,391)(20,428)
Profit after taxation from continuing operations22,855 49,740
Profit after taxation for the half year attributed to shareholders22,855 49,740
Items that may be reclassified to profit or loss
Currency translation differences416 2,256
Other comprehensive income net of tax416 2,256
Total comprehensive profit for the half year attributed to shareholders23,271 51,996
Earnings per share:
Basic earnings per share (cents) for profit attributable to shareholders5.26.7 13.2
Diluted earnings per share (cents) for profit attributable to shareholders5.26.6 13.0
The above statement should be read in conjunction with the accompanying notes.
2

Tower Limited
Consolidated balance sheet
As at 31 March 2026
$ thousandsNote 31-Mar-2630-Sept-25
Assets
Cash and cash equivalents7.195,611 71,047
Investments3.2325,896 389,225
Receivables9,599 12,780
Current tax assets2,933 1,031
Reinsurance contract assets2.117,448 20,900
Deferred tax assets857 1,367
Right-of-use assets15,353 17,157
Property, plant and equipment 5,529 5,966
Intangible assets6.194,121 93,460
Total assets567,347 612,933
Liabilities
Payables29,189 27,005
Insurance contract liabilities2.1165,929 155,627
Current tax liabilities114 20,605
Provisions6.219,589 20,902
Lease liabilities23,287 25,546
Deferred tax liabilities11,171 12,583
Total liabilities249,279 262,268
Net assets318,068 350,665
Equity
Contributed equity5.1417,898 417,224
Retained earnings2,259 35,946
Reserves(102,089)(102,505)
Total equity318,068 350,665
The above statement should be read in conjunction with the accompanying notes.
The financial statements were approved for issue by the Board on 21 May 2026.
Naomi BallantyneMike Cutter
ChairDirector
3

Tower Limited
Consolidated statement of changes in equity
For the Half Year Ended 31 March 2026
$ thousands
Note
Contributed
equity
Retained
earnings
Reserves Total Equity
Half year ended 31 March 2026
Balance as at 30 September 2025417,224 35,946 (102,505)350,665
Comprehensive income
Profit for the half year - 22,855-22,855
Currency translation differences-- 416 416
Total comprehensive income- 22,855 416 23,271
Transactions with shareholders
Dividends paid
5.3
- (56,542)-(56,542)
Share rights issued under Tower Long-Term Incentive Plan
5.1
674 --674
Total transactions with shareholders674 (56,542)-(55,868)
At the end of the half year417,898 2,259 (102,089)318,068
Half year ended 31 March 2025
Balance as at 30 September 2024460,734 4,428 (105,006) 360,156
Comprehensive income
Profit for the half year - 49,740-49,740
Currency translation differences-- 2,256 2,256
Total comprehensive income- 49,740 2,256 51,996
Transactions with shareholders
Dividends paid- (24,682)-(24,682)
Share rights issued under Tower Long-Term Incentive Plan1,449 --1,449
Capital return(45,493)--(45,493)
Total transactions with shareholders(44,044) (24,682)-(68,726)
At the end of the half year416,690 29,486 (102,750)343,426
The above statement should be read in conjunction with the accompanying notes.
Attributed to Shareholders
4

Tower Limited
Consolidated statement of cash flows
For the Half Year Ended 31 March 2026
$ thousandsNote31-Mar-2631-Mar-25
Cash flows from operating activities
Premiums received for insurance contracts issued298,963 294,835
Insurance acquisition costs paid(38,545)(36,540)
Reinsurance paid(31,902)(67,464)
Interest received 6,043 9,564
Fee and other income received861 2,578
Insurance claims paid and other insurance service expenses(167,128)(166,252)
Reinsurance recoveries received3,952 21,617
Payment to Financial Markets Authority (FMA)6.2(7,000) -
Other operating payments(2,521)(130)
Income tax paid(29,727)(536)
Net cash inflow from operating activities 32,996 57,672
Cash flows from investing activities
Proceeds from sale of interest bearing investments241,941 298,092
Payments for purchase of interest bearing investments(179,899)(287,408)
Payments for purchase of intangible assets (10,825)(9,148)
Payments for purchase of property, plant & equipment(671)(719)
Net cash inflow from investing activities 50,546 817
Cash flows from financing activities
Dividends paid5.3(56,542)(24,682)
Payments for capital return5.1-(45,493)
Payments relating to lease liabilities(2,683)(2,519)
Net cash outflow from financing activities (59,225)(72,694)
Net increase/(decrease) in cash and cash equivalents24,317 (14,205)
Effect of foreign exchange rate changes247 1,747
Cash and cash equivalents at the beginning of the half year 71,047 75,390
Cash and cash equivalents at the end of the half year 95,611 62,932
Cash and cash equivalents at the end of the half year from continuing
operations
7.195,611 62,932
The above statement should be read in conjunction with the accompanying notes.
5

Tower Limited
Notes to the consolidated financial statements
1
1.1 About this Report
a. Entities reporting
b. Statutory base
c. Basis of preparation
d. Accounting policies
The principal accounting policies adopted in the preparation of the interim financial statements are consistent with
those of the audited annual financial statements for the year ended 30 September 2025.
Overview
The interim financial statements for the six months ended 31 March 2026 are unaudited.
This section provides information that is helpful to an overall understanding of the interim financial statements and
the areas of critical accounting judgements and estimates included in the interim financial statements. It also
includes a summary of Tower's operating segments.
Tower Limited is a company incorporated in New Zealand under the Companies Act 1993 and listed on the NZX
Main Board and the Australian Securities Exchange. The Company is a reporting entity under Part 7 of the Financial
Markets Conduct Act 2013.
The interim financial statements of the Group have been prepared in accordance with New Zealand Generally
Accepted Accounting Practice (NZ GAAP), and for the purposes of NZ GAAP, the Group is a for-profit entity. They
comply with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and consequently
include a lower level of disclosure than is required for annual financial statements.
The interim financial statements should be read in conjunction with the annual financial statements for the year
ended 30 September 2025, which have been prepared in accordance with International Financial Reporting
Standards Accounting Standards (IFRS Accounting Standards) and New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS).
The interim financial statements presented are those of Tower Limited and its subsidiaries (the Group). The
address of the Group's registered office is 136 Fanshawe Street, Auckland, New Zealand.
6

Tower Limited
1.2
-
-
-
-
1.3 Impact of new accounting standards
Issued and not yet effective
The Group will adopt the standard in the period it becomes effective. It is expected that the adoption of this standard
will have a material impact on the presentation of the primary financial statements and disclosures in notes to the
financial statements. However, it will not impact the recognition and measurement of items disclosed.
Critical accounting judgements and estimates
There are amendments and interpretations which have been issued but are not yet effective.
NZ IFRS 18 Presentation and Disclosure in Financial Statements is effective for periods commencing after 1 January
2027 and will supersede the current NZ IAS 1 Presentation of Financial Statements. The purpose of NZ IFRS 18 is to
improve the comparability and transparency in the presentation of the financial statements. Some key new
requirements include further guidance on when disaggregation is required to provide users of the financial
statements with useful level of information, disclosure of management-defined performance measures that provide
statement that requires the presentation of profit and loss items by operating, investing and financing activities.
Preparation of these interim financial statements requires management to apply judgement and make estimates and
assumptions that affect the reported amounts of assets, liabilities, income and expenses. These judgements and
estimates are based on historical experience and other relevant factors and are reviewed on an ongoing basis. Actual
results may differ from these estimates.
The significant areas of judgement and estimation uncertainty applied in these interim financial statements are
consistent with those disclosed in the consolidated financial statements included in the Annual Report for the year
ended 30 September 2025. These include, in particular:
Insurance and reinsurance contracts, including Premium allocation approach eligibility, identification of groups of
onerous contracts, measurement of incurred claims liabilities, reinsurance assets, risk adjustment and confidence
levels applied.
Compliance and remediation provisions, including assessment of expected commitments and timing of settlement.
Intangible assets, including useful lives and recoverability assessments.
Lease liabilities, including determination of the incremental borrowing rate.
No new significant judgements or estimation methods have been introduced during the interim period.
7

Tower Limited
1.4 Segmental reporting
a. Operating segments
b. Financial performance
$ thousands
New Zealand Pacific IslandsOtherTotal
Half year ended 31 March 2026
Insurance revenue269,910 21,259 - 291,169
Insurance service (expense)/income(218,332) (11,323) 113 (229,542)
Net expense from reinsurance contracts held(28,801) (2,696) (48)(31,545)
Insurance service result22,777 7,240 65 30,082
Net investment income4,880 237 - 5,117
Net insurance finance expense(423)-- (423)
Net insurance and investment result27,234 7,477 65 34,776
Other income689 2 -691
Other operating expenses(2,851) (59)-(2,910)
Finance costs(254) (57)-(311)
Profit before taxation24,818 7,363 65 32,246
Tax expense(6,025) (3,348) (18)(9,391)
Profit after taxation18,793 4,015 47 22,855
Tower operates in two geographical segments, New Zealand and the Pacific region. New Zealand comprises the
general insurance business underwritten in New Zealand. Pacific Islands comprises the general insurance business
underwritten in the Pacific by Tower subsidiaries and branch operations. Other contains balances relating to
Tower Services Limited and group diversification benefits.
The Group does not derive revenue from any individual or entity that represents 10% or more of the Group's total
revenue.
Intercompany transactions with the disposal group are eliminated within continuing operations.
Information is provided by operating segment to assist an understanding of the Group's performance. Operating
segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-
maker (the Chief Executive Officer) who reviews the operating results on a regular basis and makes decisions on
resource allocation and assessing performance.
8

Tower Limited
1.4 Segmental reporting (continued)
b. Financial performance (continued)
$ thousands
New Zealand Pacific IslandsOtherTotal
Half year ended 31 March 2025
Insurance revenue274,340 21,480 -295,820
Insurance service expense(176,573) (17,619) 105 (194,087)
Net (expense)/income from reinsurance contracts held(38,469) (2,527)68 (40,928)
Insurance service result59,298 1,334 173 60,805
Net investment income9,670 306 -9,976
Net insurance finance expense(1,038) - - (1,038)
Net insurance and investment result67,930 1,640 173 69,743
Other income1,772 359 -2,131
Other operating expenses(1,254) (55)-(1,309)
Finance costs(300) (97)-(397)
Profit before taxation from continuing operations68,148 1,847 173 70,168
Tax expense(19,658) (644) (126)(20,428)
Profit before taxation from continuing operations48,490 1,203 47 49,740
c.
Financial position
$ thousands
New Zealand Pacific IslandsOtherTotal
Additions to non-current assets
31 March 2026
12,538 128 -12,666
Additions to non-current assets
30 September 2025
21,674 728 -22,402
Total assets 31 March 2026502,899 65,026 (578)567,347
Total assets 30 September 2025549,932 63,532 (531)612,933
Total liabilities 31 March 2026218,509 31,705 (935)249,279
Total liabilities 30 September 2025231,269 31,840 (841)262,268
Additions to non-current assets include additions to property, plant and equipment, right-of-use assets and
intangible assets.
9

Tower Limited
2 Insurance and reinsurance contracts
This section provides information on Tower's underwriting activities.
2.1
Insurance and reinsurance contracts
$ thousandsAssets Liabilities
Current
portion
Non-
current
portion
Total
- 36,955 36,955 - 36,955
- 128,974 104,394 24,580 128,974
- 165,929 141,349 24,580 165,929
17,448 - 14,923 2,525 17,448
$ thousands
Assets Liabilities
Current
portion
Non-
current
portion
Total
- 37,254 37,254 - 37,254
- 118,373 94,774 23,599 118,373
- 155,627 132,028 23,599 155,627
20,900 - 17,694 3,206 20,900
companies. Net expense from reinsurance contracts is measured as an allocation of reinsurance
premiums paid plus any other directly attributable expenses, less amounts recovered from reinsurers and
any change in risk from reinsurer non-performance.
Tower collects premiums from customers in exchange for providing insurance coverage. These premiums
are recognised as insurance revenue when they are earned by Tower, with an insurance contract liability
recognised on the consolidated balance sheet for unearned amounts.
When customers suffer a loss that is covered by their policy, Tower will make payments to customers or
properly recorded within the financial statements, Tower recognises a liability for incurred claims on the
consolidated balance sheet.
Liability for remaining coverage
Total reinsurance contracts held
Total insurance contracts issued
Total reinsurance contracts held
As at 31 March 2026
As at 30 September 2025
Liability for remaining coverage
Liability for incurred claims
Total insurance contracts issued
Liability for incurred claims
10

Tower Limited
2.2
Reconciliation of insurance assets and liabilities
As at 31 March 2026
$ thousands
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
adjustment
Opening insurance contract liabilities36,696 558 102,926 15,447 155,627
Insurance revenue(291,169) - - - (291,169)
Insurance service expense:
Incurred claims and other insurance service expenses* - - 182,235 3,698 185,933
Amortisation of insurance acquisition cash flows37,601 - - - 37,601
Changes relating to past service - - (3,523) (3,214)(6,737)
Losses on onerous contracts- (184) - - (184)
Finance expense from insurance contracts issued - - 474 -474
Effect of movements in exchange rates62 9 243 -314
Amounts included in comprehensive income(253,506) (175) 179,429 484 (73,768)
Cash flows:
Premiums received298,963 - - - 298,963
Claims and other insurance service expenses paid-- (168,186)-(168,186)
Insurance acquisition cash flows(38,545) - - - (38,545)
Amounts included in statement of cash flow260,418 - (168,186)-92,232
Pre-recognition cash flows derecognised and other changes (7,036)- (1,126)-(8,162)
Insurance contract liabilities at 31 March 202636,572 383 113,043 15,931 165,929
Total
Liabilities for remaining
coverage
Liabilities for incurred
claims
Certain cash flows presented above may be on a deemed basis in respect of movements through the insurance
contract liabilities, and certain amounts may be recognised in other receivable, payable and provision balances, so
they may differ from the actual cash flow amounts reported in the consolidated statement of cash flows.
*Excludes $12.9m of insurance service expenses for depreciation and amortisation, which do not form part of
insurance contract liabilities on the consolidated balance sheet.
11

Tower Limited
2.2
Reconciliation of insurance assets and liabilities (continued)
As at 30 September 2025
$ thousands
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
adjustment
Opening insurance contract liabilities41,658 384 122,348 13,179 177,569
Insurance revenue(594,348) - - - (594,348)
Insurance service expense:
Incurred claims and other insurance service expenses* - - 323,792 4,818 328,610
Amortisation of insurance acquisition cash flows71,617 - - - 71,617
Changes relating to past service - - (11,532) (2,550)(14,082)
Reversals on onerous contracts- 148 - - 148
Finance expense from insurance contracts issued - - 2,158 -2,158
Effect of movements in exchange rates327 26 845 -1,198
Amounts included in comprehensive income(522,404) 174 315,263 2,268 (204,699)
Cash flows:
Premiums received593,413 - - - 593,413
Claims and other insurance service expenses paid-- (334,685)-(334,685)
Insurance acquisition cash flows(75,292) - - - (75,292)
Amounts included in statement of cash flow518,121 - (334,685)-183,436
Pre-recognition cash flows derecognised and other changes (679)-- -(679)
Insurance contract liabilities at 30 September 202536,696 558 102,926 15,447 155,627
Liabilities for remaining
coverage
Liabilities for incurred claims
Total
Certain cash flows presented above may be on a deemed basis in respect of movements through the insurance contract
liabilities, and certain amounts may be recognised in other receivable, payable and provision balances, so they may
differ from the actual cash flow amounts reported in the consolidated statement of cash flows.
*Excludes $25m of insurance service expenses for depreciation and amortisation, which do not form part of insurance
contract liabilities on the consolidated balance sheet.
12

Tower Limited
2.3
Reconciliation of reinsurance assets and liabilities
$ thousands
Excluding loss
recovery
component
Loss
recovery
component
Estimates of
the present
value of future
cash flows
Risk
adjustment
Half year ended 31 March 2026
(1,093)- 20,808 1,185 20,900
(31,228) - - - (31,228)
- - 3,179 (772)2,407
- - (2,419) (305)(2,724)
- - 51 -51
- - 92 -92
(31,228)- 903 (1,077)(31,402)
31,902 - - - 31,902
- - (3,952)-(3,952)
31,902 - (3,952)-27,950
(419)- 17,759 108 17,448
Year ended 30 September 2025
(11,690)- 44,547 2,646 35,503
(77,188) - - - (77,188)
- - 11,477 (790)10,687
- - (10,333) (671)(11,004)
- - 571 -571
(204)- (257)-(461)
(77,392)- 1,458 (1,461)(77,395)
87,989 - - - 87,989
- - (25,197)-(25,197)
87,989 - (25,197)-62,792
(1,093)- 20,808 1,185 20,900
volatile claims events. The net expense from reinsurance contracts held reflects the cost of reinsurance protection
during the period, offset by recoveries recognised in respect of incurred claims.
Reinsurance recoveries recognised during the half year were broadly in line with expectations and contributed to
Effect of movements in exchange rates
Amounts included in comprehensive income
Cash flows:
Premiums paid net of ceding commissions
Reinsurance recoveries (net of profit share commissions)
Amounts included in statement of cash flow
Reinsurance contract assets at 30 September 2025
Reinsurance premiums
Amounts recoverable from reinsurers:
Amounts recoverable for incurred claims
Changes relating to past service
Finance income from reinsurance contracts held
Assets for remaining
coverage
Asset for incurred claims
Total
Opening reinsurance contract assets
Reinsurance premiums
Amounts recoverable from reinsurers:
Amounts recoverable for incurred claims
Changes relating to past service
Effect of movements in exchange rates
Certain cash flows presented above may be on a deemed basis in respect of movements through the reinsurance
contract assets, and certain amounts may be recognised in other receivable, and payable balances, so they may differ
from the actual cash flow amounts reported in the consolidated statement of cash flows.
Finance income from reinsurance contracts held
Amounts included in comprehensive income
Premiums paid net of ceding commissions
Reinsurance recoveries (net of profit share commissions)
Amounts included in statement of cash flow
Cash flows:
Reinsurance contract assets at 31 March 2026
Opening reinsurance contract assets
13

Tower Limited
3 Investments
3.1 Investment income
$ thousands31-Mar-2631-Mar-25
Interest income6,589 9,224
Net realised gain1,522 1,452
Net unrealised loss(2,774)(547)
Investment income5,337 10,129
3.2 Investments
Level 1
Level 2
Level 3
$ thousandsLevel 1Level 2Level 3Total
As at 31 March 2026
Fixed interest investments-325,862-325,862
Property investment - 34 - 34
Investments-325,896-325,896
As at 30 September 2025
Fixed interest investments-389,191-389,191
Property investment - 34 - 34
Investments-389,225-389,225
Tower invests funds collected as premiums and provided by shareholders to ensure it can meet its obligations to
pay claims and expenses and to generate a return to support its profitability. Tower has a low appetite for
investment related risks and therefore the majority of its investments are in investment grade supranational and
government bonds, and term deposits.
There have been no transfers between levels of the fair value hierarchy during the current period (2025: nil).
Tower designates its investments at fair value through profit or loss in accordance with its Treasury policy. It
categorises its investments into three levels based on the inputs available to measure fair value:
Fair value is calculated using quoted prices in active markets. Tower currently does
not have any Level 1 investments.
Investment valuations are based on direct or indirect observable data other than
quoted prices included in Level 1. Level 2 inputs include: (1) quoted prices for similar
assets or liabilities; (2) quoted prices for assets or liabilities that are not traded in an
active market; or (3) other observable market data that can be used for valuation
purposes. Tower investments included in this category include government and
corporate debt, where the market is considered to be lacking sufficient depth to be
considered active, and part ownership of a property that is rented out to staff.
Investment valuation is based on unobservable market data. Tower currently does not
have any Level 3 investments.
14

Tower Limited
4 Risk Management
4.1 Capital management risk
Regulatory solvency capital
$ thousands
Parent GroupParent Group
298,864 320,764 296,427 314,579
208,715 206,588 207,410 205,487
90,149 114,176 89,017 109,092
143% 155%143% 153%
well above the regulatory minimum. Movements in solvency during the period primarily reflect operating earnings
and capital management actions undertaken in the ordinary course of business.
The Group continues to manage its capital position to ensure it maintains appropriate buffers above regulatory
requirements while supporting business growth and returns to shareholders.
Tower is exposed to multiple risks as it works to set things right for its customers and their communities whilst
maximising returns for its shareholders. Everyone across the organisation is responsible for ensuring that Tower's
risks are managed and controlled on a day-to-day basis.
As at 31 March 2026
As at 30 September 2025
Tower Limited's Group and Parent solvency margin are illustrated in the table below.
Solvency capital
Adjusted prescribed capital requirement
Adjusted solvency margin
Adjusted solvency ratio
15

Tower Limited
5 Capital Structure
5.1 Contributed equity
$ thousands31-Mar-2630-Sept-25
Opening balance417,224 460,734
Capital return (including costs of the capital return)-(45,548)
Share rights issued under Tower Long-Term Incentive Plan674 2,038
Total contributed equity417,898 417,224
Represented by:
Opening balance (number of shares)342,552,063 379,483,987
Issue of new shares under Tower Long-Term Incentive Plan859,288 1,128,138
Cancellation of shares on capital return-(38,060,062)
Total shares on issue343,411,351 342,552,063
5.2
Earnings per share
31-Mar-2631-Mar-25
22,855 49,740
22,855 49,740
342,841,657 377,266,075
3,626,012 4,357,428
346,467,669 381,623,503
Basic earnings per share (cents)6.7 13.2
Diluted earnings per share (cents)6.6 13.0
5.3
Dividends
Weighted average number of ordinary shares for basic earnings per share
Total profit attributable to shareholders ($ thousands)
On 29 January 2026, Tower paid a final dividend of 16.5 cents per share in respect of the 2025 financial year, totalling
$56.5m. On 21 May 2026, the Board approved an interim dividend of 5.0 cents per share, with the dividend being
payable on 25 June 2026 for approximately $17.2m.
Weighted average number of dilutive potential ordinary shares issued under the Tower
Long-Term Incentive Plan
Weighted average number of ordinary shares for diluted earnings per share
Basic earnings per share is calculated by dividing the net profit attributable to shareholders by the weighted average
number of fully paid shares.
Diluted earnings per share includes shares that would be issued if unvested share rights were exercised. The weighted
average number of shares is adjusted by the number of outstanding rights to executive shares that are assessed to be
vested at their future vesting dates.
Ordinary shares issued by the Company are classified as equity and are recognised at fair value less direct issue costs. All
shares rank equally with one vote attached to each share. There is no par value for each share.
This section provides information about how Tower finances its operations through equity. Tower's capital position
provides financial security to its customers, employees and other stakeholders whilst operating within the capital
requirements set by regulators.
Profit from continuing operations attributable to shareholders ($ thousands)
16

Tower Limited
6
Other balance sheet items
6.1 Intangible assets
As at 31 March 2026
$ thousandsGoodwill
Software and
work in progress
Customer
relationships
Total
Composition:
Cost17,744 134,052 38,572 190,368
Accumulated amortisation-(69,797) (26,450)(96,247)
Intangible assets17,744 64,255 12,122 94,121
Reconciliation:
Opening balance17,744 61,839 13,877 93,460
Amortisation-(8,409)(1,755)(10,164)
Additions*-11,831-11,831
Impairment-(1,006)-(1,006)
Closing Balance17,744 64,255 12,122 94,121
As at 30 September 2025
Composition:
Cost17,744 123,227 40,674 181,645
Accumulated amortisation-(61,388) (26,797)(88,185)
Intangible assets17,744 61,839 13,877 93,460
Reconciliation:
Opening balance17,744 60,855 18,022 96,621
Amortisation-(15,367)(4,145)(19,512)
Additions-21,188-21,188
Impairment-(4,545)-(4,545)
Transfers to property, plant and equipment-(292)-(292)
Closing Balance17,74461,83913,87793,460
This section provides information about assets and liabilities not included elsewhere.
platform and supporting business systems. This includes costs associated with establishing the Westpac New Zealand
partnership and continued rollout of the Claims Transformation programme. These projects are expected to support
revenue growth, improve customer experience, and deliver operational efficiencies.
During the year, an impairment loss was recognised on work-in-progress assets within the Tower New Zealand
segment. The recoverable amount of these assets was assessed in accordance with IAS 36 Impairment of Assets and the
carrying amount has been updated accordingly.
17

Tower Limited
6.2 Provisions
Composition
$ thousands31-Mar-2630-Sept-25
Annual leave and other employee benefits5,877 10,573
Compliance and remediation13,712 10,329
Provisions19,589 20,902
A compliance and remediation provision has been recognised and is reassessed at each reporting period to determine
is considered, and the re-assessment has resulted in an additional $11.2m being recognised in the current period, which
has been offset by payments made during the period. It is possible that the final settlement could be below or above the
provision, if the actual outcome differs to the assumptions used in estimating the provision or additional matters are
identified. Estimates may change over time as new facts emerge, and such changes may result in a change to the final
provision and amounts paid.
regarding the misapplication of multi policy discounts. The penalty, which was jointly recommended to the Court by
18

Tower Limited
7
7.1
$ thousands31-Mar-2630-Sept-25 31-Mar-25
59,409 71,047 35,913
36,202 - 27,019
Cash and cash equivalents
95,611 71,047 62,932
7.2 Contingent liabilities
7.3
Capital commitments
7.4
Subsequent events
On 21 May 2026, the Board approved an interim dividend of 5.0 cents per share, with the dividend being payable on 25
June 2026 for approximately $17.2m.
Subsequent to balance date, a large weather event impacted parts of New Zealand, giving rise to estimated gross claims
of approximately $5.0m. This event has been assessed as a non-adjusting subsequent event and accordingly, has not
been recognised in these financial statements.
There were no other subsequent events
The Group is occasionally subject to claims, disputes and customer remediation as a commercial outcome of conducting
insurance business. Provisions are recorded for these claims or disputes when it is probable that an outflow of resources
will be required to settle any obligations. Best estimates are included within claims reserves for any litigation that has
arisen in the usual course of business.
The Group has no other contingent liabilities.
As at 31 March 2026, Tower has nil capital commitments (2025: nil).
Other information
This section includes additional required disclosures.
Notes to the consolidated statement of cash flows
Composition
Tower operates in countries in the Pacific Islands that are subject to foreign exchange restrictions, which may
restrict the ability for immediate use of cash by the parent or other subsidiaries. As at 31 March 2026, this
included NZD 4.4m held in Papua New Guinea (30 September 2025: NZD 3.7m) and NZD 0.4m held in the Solomon
Islands (30 September 2025: NZD 3.8m) following the sale of the disposal groups. This cash is not currently
available for use outside of these countries.
*The average interest rate at 31 March 2026 for deposits at call is 1.99% (31 March 2025: 3.36%).
Cash at bank
Deposits at call*
19

PricewaterhouseCoopers, PwC Tower, 15 Customs Street West,
Private Bag 92162, Auckland 1142, New Zealand
+64 9 355 8000
pwc.co.nz
Independent auditor’s review report
To the shareholders of Tower Limited
Report on the consolidated interim financial statements
Our conclusion
We have reviewed the consolidated interim financial statements of Tower Limited (the Company) and its
subsidiaries (the Group), which comprise the consolidated balance sheet as at 31 March 2026, and the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the six month period ended on that date, and notes, comprising material accounting
policy information and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying
consolidated interim financial statements of the Group do not present fairly, in all material respects, the financial
position of the Group as at 31 March 2026, and its financial performance and cash flows for the six month period
then ended, in accordance with International Accounting Standard 34 Interim Financial Reporting(IAS 34) and
New Zealand Equivalent to International Accounting Standard 34 Interim Financial Reporting(NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 (Revised)
Review of Financial Statements Performed by the Independent Auditor of the Entity(NZ SRE 2410 (Revised)).
Our responsibilities are further described in the Auditor’s responsibilities for the review of the consolidated interim
financial statementssection of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by
the New Zealand Auditing and Assurance Standards Board (PES 1), as applicable to audits and reviews of public
interest entities. We have also fulfilled our other ethical responsibilities in accordance with PES 1.
In our capacity as auditor and assurance practitioner, our firm also provides other assurance services. In addition,
certain partners and employees of our firm may deal with the Group on normal terms within the ordinary course of
trading activities of the business. The firm has no other relationship with, or interests in, the Group.

21PwC – Independent auditor’s review report
Responsibilities of the Directors for the consolidated interim financial
statements
The Directors of the Company are responsible on behalf of the Company for the preparation and fair presentation of
these consolidated interim financial statements in accordance with IAS 34 and NZ IAS 34 and for such internal
control as the Directors determine is necessary to enable the preparation and fair presentation of the consolidated
interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the consolidated interim financial
statements
Our responsibility is to express a conclusion on the consolidated interimfinancial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that causes us to
believe that the consolidated interim financial statements, taken as a whole, are not prepared in all material
respects, in accordance with IAS 34 and NZ IAS 34.
A review of consolidated interimfinancial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. The
procedures performed in a review are substantially less than those performed in an audit conducted in accordance
with International Standards on Auditing (New Zealand) and consequently does not enable us to obtain assurance
that we might identify in an audit. Accordingly, we do not express an audit opinion on these consolidated interim
financial statements.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our review work has been undertaken so that
we might state those matters which we are required to state to them in our review report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company
and the Company’s shareholders, as a body, for our review procedures, for this report or for the conclusion we have
formed.
The engagement partner on the review resulting in this independent auditor’s review report is Lisa Crooke.
For and on behalf of:
PricewaterhouseCoopersAuckland
21 May 2026

---

2026 Half Year
Results
1 October 2025 to 31 March
2026
21 May 2026

AGENDA
Chair’s update
Naomi Ballantyne,
Chair
Business update
Paul Johnston,
Chief Executive Officer
Financial performance
Simon Hoole,
Interim Chief Financial
Officer
Looking forward
Paul Johnston,
Chief Executive Officer
2

Chair’s update
Tower delivers strong performance through the cycle
Resilient business delivering shareholder value
•Interim dividend declared 5 cents per share
•Shareholder returns supported by earnings
•Strong capital and solvency
Positioned for sustainable earnings growth
•Delivering policy growth against market headwinds
•Secured pipeline of revenue growth
•Strategic investment delivering efficiencies
Delivering on our customer promise
•Customer remediation ongoing – committed to making things right
3

TOWER HY26 RESULTS
Business
update
Paul Johnston,
Chief Executive
Officer
4

Overview
Strong HY26 earnings
•Strong policy growth while soft rating cycle lowers GWP
•BAU claims ratio trending upwards towards historical average
•Four large events with a cost of $18.5m
•Reported profit impacted by customer remediation
Actions taken to strengthen performance and resilience
•Decisive actions on cost, pricing, and digital efficiency to
navigate external headwinds and maintain position for growth
Second half priorities
•Launch Westpac partnership
•Technology investments in AI and customer data
•Customer remediation and regulatory change
5

What makes Tower different
Kiwi-owned, uniquely advantaged
Customer experience & technology
•Transparency to customers
•Streamlined platform and product set
•High digital capability; My Tower and partnerships
•AI enabled contact centre
Underwriting and pricing
•Targeted risk selection and competitive pricing
•Address level risk-based pricing
•Higher share of lower risk properties
6

Our performance
Strong operational and business performance
5 cents
44%
vs 38% in HY25
BAU claims ratio
(Business as usual)
MER
(Management expense ratio)
31%
vs 30% in HY25
Large event costs
$18.5m
vs $3m in HY25
Reported profit
$22.9m
vs $49.7m in HY25
Note 1: Definition of underlying profit and a reconciliation to reported profit is included in the appendices
GWP growth
(Gross written premium)
1% | $301m
vs $297m in HY25
$36.8m
vs $61.7m in HY25
Underlying profit
5% | 327k
vs 312k at HY25
Customer growth
1
Dividend per share
interim dividend declared
vs 8 cents in HY25
7

Strong customer and policy growth
•5% growth in NZ policies year on year primarily
driven by partnership channel
Average premiums
•Reduction in higher risk properties contributed to
a reduction in average house premiums
•Market conditions suppressing average premiums
Increased weather events
•Higher frequency of weather events increased
BAU claims costs
•Large event claims costs of $18.5m (HY25 $3m)
with full year allowance of $45m
Economic factors
•Investment income impacted by lower interest
rates and global market volatility
Factors influencing HY26 result
UNDERLYING NPAT
8

Actively managing economic headwinds
Decisive actions are positioning Tower for stronger outcomes
External factorsTower’s response
Economic slowdown
•Passing cost and underwriting savings to customers driving strong policy growth
•Activating switching market through increased brand and marketing spend
•New partnerships secure growth pipeline
•Policy growth through the cycle demonstrates the customer proposition
Weather events
•Address-level risk-based pricing mitigates impact of weather volatility
•Prudent FY26 large event allowance of $45m
Supply chain
•Digital & tech investments driving efficiencies (incl. Rotorua office closure)
•Reinsurance savings strengthening margins
•Monitoring inflation and impacts on supply chain; agile pricing capability
Financial markets
volatility
•Conservative investment portfolio minimises volatility; positioned for economic rate cycle upturn
9

Policy growth in a competitive market
•+15k new customers to 327k
•5% growth in NZ policies year on year (house
9%, motor 3%, contents 5%)
•Improved risk quality - Tower’s total expected
average annual loss from perils reduced by:
•27% Sea surge
•10% Landslide
•10% Flood
•2% Earthquake
•> 90% of new business policies sold were
assessed by Tower as Low or Very- Low for
flood, sea surge and landslide
TOTAL MOVEMENT IN NZ RISK COUNTS (000’s)
10

Improvements in customer experience
and efficiency
•Net promoter score improved to +50 (HY25: +41)
•New Zealand tasks¹ completed digitally
•60% sales (no change)
•54% service (+7%)
•70% claims lodgement (+3%)
•AI enabled contact centre reducing average call
handling time; down by 2 minutes
•1% of NZ motor claims in month of March resolved
end to end without Tower human intervention
•Streamlined geographical operations
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.
.
NET PROMOTER SCORE
11

Large event claims
•Four events
1
in FY26 H1 with estimated cost of $18.5m
•One large event has occurred since 31 March 2026; Wellington flooding event in April 2026
with an estimated cost of just under $5m
•$45m large event allowance for FY26; $21.5m available for remainder of FY26
12
Note 1: Large events are defined as having a cost to Tower of $2m or more, with lodged claims from two or more policyholders. The cost of large events is the net cost to Tower after reinsurance recovered where applicable
.

Customer remediation programme
•HY26 charge of $10.9m after tax, predominantly related to one remediation and the complexity in
calculating refunds associated with a legacy policy system
•Includes further provision for remediation payments to customers, plus programme costs incurred
•Root causes largely linked to past migration, system and process errors, with core issues resolved
through strengthened controls
•
Provision reflects identified issues; programme remains ongoing as assessments for other
application of policy discounts are completed
Other non-underlying items
•Rotorua office closure costs of $1.8m after tax charge to P&L for staff and property exit costs
•Canterbury earthquakes (CEQ): $0.3m after tax release to P&L
•Other costs for regulatory change and intangible assets written off
Customer remediation programme
13

TOWER HY26 RESULTS
Financial
performance
Simon Hoole,
Interim Chief
Financial Officer
14

Group underlying performance
•Gross written premium growth of 1%
•BAU claims ratio increased to 44% due to
targeted rate decreases, and higher frequency
of weather events
•Large event costs of $18.5m
•Management expense ratio of 31% increased
but in line with full year target
•Underlying NPAT
1
including large events of
$36.8m
•Reported profit of $22.9m impacted by costs
of customer remediations and Rotorua office
closure
Note 1: Definition of underlying profit and a reconciliation to reported profit is included in the appendices
Insurance revenue
​​296.63.7300.3
Reinsurance​
​​(39.1)7.8(31.3)
Income tax expense
Underlying profit after tax​
​​
Insurance service result
​​78.0(31.0)47.1
Net investment income​
​
Net insurance finance expense
​​(1.0)0.6(0.4)
Other income and expenses
​​(0.2)(0.5)(0.7)
Change​
Gross written premium​
​​297.03.8300.8
$ million​​​HY26HY25
Net insurance revenue
​​257.511.5269.0
Management expenses​
​​(73.5)(3.8)(77.4)
Large event claims expense​
​​(3.0)(15.4)(18.5)
BAU claims expense​
​​(98.2)(20.9)(119.1)
Net commission expense​
​​(4.7)(2.3)(7.0)
​10.0(4.9)5.1
(42.4)
Insurance service expense
​​(221.9)(179.5)
Reported profit/(loss) after tax​
​​49.7(26.9)22.9
Underlying profit before tax
​​86.8(35.7)51.1
Non-underlying items
​​(12.0)(2.0)(13.9)
36.861.7(24.9)
(14.3)(25.1)10.8
Key ratios (% of Net insurance revenue)HY26HY25Change
Claims ratio excluding large events
44.3%38.1%6.2%
Large event costs ratio
6.9%1.2%5.7%
Management expense ratio
31.4%30.4%1.0%
Combined ratio
C

C
82.6%69.7%12.9%
15

•Underlying NPAT
1
of $36.8m vs $61.7m in HY25
•Business growth reflects higher net insurance
revenue less theassociated growth in claims
and management expenses
•BAU claims ratio increased from prior year from
rating actions earning through and return to
more normalised weather frequency
•Large event costs in HY26 of $18.5m before tax
versus $3m before tax in HY25
•Investment income impacted by lower yield
and mark to market losses from global market
volatility
Movement in underlying NPAT
16Note 1: Definition of underlying profit and a reconciliation to reported profit is included in the appendices

•1% premium growthreflects softer rating
environment
•NZ House GWP growth 2%; 9% policy growth
•NZ Motor GWP growth 0%; 3% policy growth
•Partnerships GWP growth of 8%
•NZ retention rate of 79% (HY25: 78%)
GROSS WRITTEN PREMIUM
Rating pressure impacts GWP growth
17
TOWER EFFECTIVE
1
AVERAGE PREMIUM
(ANNUAL CHANGE)
Note 1: Effective average premium highlights impact of change in technical premium, excesses, and sum insured on GWP

Note 1: Severity is defined as the cost of claims (excluding large events, large house, windscreen) divided by the count of claims
Note 2: Frequency is defined as the number of claims (same exclusions as above) divided by risks in force
The historical severity and frequency numbers are current estimates as at 31 March 2026 reflecting development of prior year claims in their respective incurred periods
•BAU claims ratio of 44% (HY25: 38%)
•BAU claims ratio will continue to increase towards
historical average as rating changes earn through
•Increased number of weather events has lifted
frequency and severity for both house and motor
•Four large events in HY26 with an estimated cost
of $18.5m
•One large event has occurred since 31 March and
is not included in HY26 results - Wellington
flooding event in April 2026 with an estimated
cost of just under $5m
Higher frequency and severity of claims
NZ HOUSE SEVERITY & FREQUENCY
NZ MOTOR SEVERITY
1
& FREQUENCY
2
18

•MER increased by 1% to 31.4%
•Scale efficiencies from business growth
contributes 0.4% reduction in MER
•Increased marketing to support
revenue growth
•Software costs increase to improve
customer experience and processes
Stable management expense ratio
19
M A N A G E M E N T E X P E N S E R A T I O ( M E R )

•Net investment income $5.1m; $4.9m lower than
HY25 due to lower investment balances, yield, and
mark to market losses from global market volatility
•Running yield on the core investment portfolio is
3.4% as at 31 March 2026
•Conservative investment strategy with low
duration (target of 6 months)
•Yields expected to increase in line with OCR
Conservative investment strategy
C O R E I N V E S T M E N T P O R T F O L I O
1

Y I E L D
I N V E S T M E N T A S S E T P R O F I L E
Note 1: Core investment portfolio refers to Tower’s fixed income investment portfolio in NZ. It excludes cash held for operational purposes in NZ and cash and short-term deposits held by Tower’s Pacific subsidiaries. Subsidiaries
of banking groups with a credit rating have been grouped under their parent bank’s credit rating, even if unrated themselves
20

Note 1: SR = Solvency ratio – the ratio of solvency capital to adjusted prescribed capital
Note 2: Based on Tower’s ordinary dividend policy to pay a sustainable annual dividend in the range of between 60-80% of adjusted earnings where prudent to do so
•Solvency ratio
1
of 143%
•Adjusted solvency margin as at 31 March 2026 is
$90.1m - stated net of interim dividend of 5
cents per share
2
•Tower has an internal target solvency margin of
$84.3m
•A- financial strength rating reaffirmed in April
2026 by AM Best
TOWER SOLVENCY
NZ PARENT
Capital and solvency position
21

TOWER HY26 RESULTS
22
Looking
forward
Paul Johnston,
Chief Executive
Officer

Second half priorities
•Launching new partnership with Westpac
•Referral of Kiwibank back book
•Contact centre enhancements and digital adoption
•Progressing with AI implementation
•Building customer data foundations to unlock personalisation
•Customer remediation and implementing regulatory change
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. $18.5m incurred in HY26
•Reported NPAT will be impacted by non-underlying items for remediation activity and costs
associated with regulatory change
HY26
Actual
FY26
Guidance
FY28
Target
GWP growth1%Low-single digit
>$750m
(>7.5% CAGR)
Management expense ratio31.4%31% - 32%28% - 30%
Underlying NPAT
(excluding large events)
$50m$87m - $97m
Large events$18.5m$45m
Combined operating ratio82.6%86% - 88%85% - 87%
Underlying NPAT
(assuming full utilisation of large events allowance in FY26)
$36.8m$55m - $65m
24

TOWER HY26 RESULTS
Questions?
25

TOWER HY26 RESULTS
Appendices
26

Reinsurance programme
•Catastrophe reinsurance of up to $915m for two
events and an additional prepaid third event cover
up to $85m
•$20m retention for catastrophe events
•Reinsurance programme also includes:
•Excess of loss
1
for large single property claims
•General accident and marine cover
Note 1: Excess of loss reinsurance means Tower retains responsibility for claims up to a certain threshold, with the reinsurer covering losses above that amount.
$915m
$85m
1st Cat loss
(retention $16.9m)
2nd Cat loss
(retention $16.9m)
1st Cat event2nd Cat event3rd Cat event
3rd Cat loss
(retention $20m)
Reinsurance
coverage of
$895m
Reinsurance
coverage of
$895m
Reinsurance
coverage of
$65m
1st Cat Loss
(retention $20m)
2nd Cat Loss
(retention $20m)
3rd Cat Loss
(retention $20m)
27

Business unit distribution
TOWER DIRECT
•Policy growth offset by
premium rate reductions
•In force risk growth in HY26
of 5,100 (HY25: +3,000)
PACIFIC
•Underlying growth of 1%
•Continuation of risk review
across Pacific countries
impacted growth
PARTNERSHIPS
•Underlying growth of 8%
•Total in force risks
increased 15% to 136,000
TOWER DIRECT GWP
ROLLING 12 MONTHS
PARTNERSHIPS GWP
ROLLING 12 MONTHS
PACIFIC GWP
ROLLING 12 MONTHS
28

Reconciliation between underlying profit after
tax and reported profit after tax
Underlying and reported profit:
•“Net insurance revenue”, “net insurance service expense”
and “underlying profit” do not have a standardised
meaning under Generally Accepted Accounting Practice
(GAAP). Consequently, they may not be comparable to
similar measures presented by other reporting entities
and are not subject to audit or independent review.
•Tower uses underlying profit as an internal reporting
measure as management believes it provides a better
measure of Tower’s underlying performance than
reported profit, as it excludes large or non-recurring
items that may obscure trends in Tower’s underlying
performance, and is useful to investors as it makes it
easier to compare Tower’s financial performance
between periods.
•Tower has applied a consistent approach to measuring
which items are excluded from underlying profit in the
current and comparative periods.
•“Reported profit after tax” is calculated and presented in
accordance with GAAP
(1) Non-underlying items include net impact of customer remediation provision increase and related costs, Canterbury earthquake valuation update, software impairment, regulatory and
compliance projects such as Financial Markets (Conduct of Institutions) Amendment Act
(2) Reclassification of claims handling expenses from management expenses to claims expense; and FX gains/losses from other income to management expenses
(3) Reclassification of reinsurance expenses to present as net income from reinsurance contracts held for statutory purposes
(4) Reclassification of reinsurance and other recoveries to present as net income from reinsurance contracts held for statutory purposes
$ million
HY26
underlying
profit
Non-
underlying
items (1)
Management
expense
reclasses (2)
Reclass of
reinsurance
expenses (3)
Reclass of
reinsurance &
other recovery
revenues (4)
HY26
reported
profit
Gross written premium
300.8
Insurance revenue
300.3(9.1)291.2
Reinsurance expense
(31.3)
31.3
Net insurance revenue
269.0(9.1)0.031.30.0
BAU claims expense
(119.1)(0.7)(15.8)0.2
Large event claims expense
(18.5)
Management expenses
(77.4)(6.8)15.5
Net commission expense
(7.0)
(0.0)
Insurance service expense
(221.9)(7.5)(0.3)0.00.2(229.5)
Net expense from reinsurance contracts held
(31.3)(0.2)
(31.5)
Insurance service result
47.1(16.7)(0.3)0.00.030.1
Net investment income
5.15.1
Net insurance finance expense
(0.4)(0.4)
Other income and expenses
(0.7)(2.2)0.3(2.5)
Underlying profit before tax
51.1
Income tax expense
(14.3)
4.9
(9.4)
Underlying profit after tax
36.8
Non-underlying costs
(13.9)13.9
Reported profit after tax
22.9
0.00.00.00.0
22.9
29

This presentation has been prepared by Tower Limited to provide shareholders with information on Tower’s business. This document
is part of, and should be read in conjunction with an oral briefing to be given by Tower. A copy of this webcast of the briefing is
available at http://www.tower.co.nz/investor-centre/ It contains summary information about Tower as at 31 March 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
30

---

1

Tower HY26 Results Announcement Investor Presentation Script
Slide 1 – 2026 Half Year Results
Naomi Ballantyne
Good morning and thank you for making the time to join us for this investor
call and presentation of our 2026 half year results. I am delighted to be
speaking to you for the first time today as Chair of Tower.
Slide 2 - Agenda
With me in Auckland is our Chief Executive Officer, Paul Johnston, and Interim
Chief Financial Officer, Simon Hoole, who will take you through the results and
answer your questions.
Slide 3 – Chair’s update
Tower’s half-year results demonstrate the strength and resilience of our
business. Despite a considerably more challenging operating environment –
marked by higher weather-related claims, pricing pressure and economic
uncertainty – we delivered solid underlying earnings, with an underlying net
profit after tax of $36.8 million.
This performance underscores our ability to navigate headwinds while
continuing to invest in sustainable growth.
The Board is pleased to declare an interim dividend of 5 cents per share,
reflecting our commitment to delivering consistent shareholder returns,
underpinned by robust earnings and a strong capital and solvency position.

2

We are continuing to make good progress on our strategy - growing our
customer base, strengthening the quality of our portfolio through risk-based
pricing, and building a clear pipeline for future revenue through partnerships
with Trade Me, Kiwibank and from mid-year, Westpac – supported by our new
brand campaign.
We are also investing in technology, innovation, and AI to support the next
phase of Tower’s growth - improving efficiency and customer experience.
These actions position Tower to continue delivering sustainable earnings
growth over time, even in a demanding environment.
[pause]
We remain unwavering in our commitment to transparency and fairness and
that means doing the right thing for our customers.
While it is disappointing to identify a further substantial remediation issue
linked to a legacy pricing system, we have moved to correct it and remediation
is now underway.
With my personal experience I understand how difficult - and at times
disheartening - it can be for today’s leaders, staff, shareholders and customers
to deal with issues that have arisen over time – particularly those associated
with older technology with its inherent lack of data insights, and ways of
working.
Much of this work is necessarily focused on identifying and putting right
historical issues. It is complex, time consuming and costly, and it does reduce

3

the capacity to invest in new innovations that would improve experiences and
outcomes for current and future customers.
That said, this is important work, and we are committed to doing it properly. I
want to acknowledge the ongoing work of today’s Tower team in working
through its legacy systems and processes, to finish the job of finding and
putting right those old wrongs as quickly as possible and to the satisfaction of
our regulators.
While we are sharply focused on resolving these historic issues and reducing
the risk of recurrence, it is also important to recognise that growing an
innovative business may at times involve getting things wrong. Success is not
defined by the absence of issues, but by how we respond to them – identifying
issues, addressing them decisively, and learning from mistakes to prevent
recurrence.
Paul will provide more detail on the remediation programme shortly.
[pause]
Before I hand over to Paul, I would like to touch briefly on the broader New
Zealand Inc. context.
The government’s review into insurance availability and affordability is a
critical conversation for New Zealand. At Tower, we are leaning into that
challenge – because we know that accessible, affordable insurance is essential
for Kiwi households.
While external factors matter, there is a lot within our control as insurers and
Tower is taking the lead in three key areas.

4

We have led the way with plain-English policies, giving customers more
visibility into what drives their premiums and how they change over time. We
are also helping them understand key risks - especially climate risk – so they
can make informed choices.
We urge the broader industry to continue to lift standards in these areas for
the benefit of all New Zealanders.
The second area that Tower has focused on is using technology to reduce costs
and improve experience. Through digitisation, use of data and AI, we are
simplifying processes, speeding up claims responses, and running a more
efficient business. This helps keep premiums as low as possible, while our
pricing approach ensures customers benefit where underlying risk is lower.
Thirdly, we are increasingly looking beyond traditional models to innovate for
the future. Tower is developing parametric cover and exploring usage-based
pricing, more flexible options and loss-prevention solutions – products that
reflect how people live today and that make insurance simpler, more relevant
and more proactive.
[pause]
While we focus on what we can control, systemic issues require collective
action.
Government levies and taxes already account for nearly half of an insurance
premium, and the cumulative impact of regulation – though well-intentioned –
adds significant cost and complexity. Clear prioritisation and greater
coordination across regulators and government would help manage these
pressures more effectively.

5

[pause]
There is of course another key factor in the affordability challenge.
Long-term affordability and access to insurance ultimately depends on
addressing the root causes of risk.
That means the Government and Councils investing in resilience —
infrastructure, flood protection, stronger building standards, and more
disciplined land-use planning.
Risk-based pricing also plays a vital role, sending clear signals about where risk
is increasing and resilience investment is needed, helping customers,
communities and government make better decisions.
We need to empower customers with information. Tower has made its
assessment of hazard risk visible and accessible, because informed decisions
are critical to building long-term resilience.
Our approach is working. Most of our customers are now benefiting from
lower natural hazard premiums, while those with higher exposure receive
clearer risk signals. At the same time, the overall quality of our portfolio is
improving.
Ultimately, maintaining a strong and competitive insurance market depends on
getting this balance right — investing in resilience, pricing risk appropriately,
and directing effort where it will have the greatest impact.
That is what will support affordability, maintain access to insurance, and
strengthen the resilience of our communities.

6

As a Kiwi and Pacific business, with decisions made here in New Zealand based
on our deep and focussed knowledge of this market and a shared
understanding of the daily lives of the communities we serve. We are closely
connected to those communities, and our focus remains on building long-term
value – for our customers, our shareholders, New Zealand and the Pacific.
I will now hand over to Paul and Simon, who will take you through the results
and outlook before we open for questions.
Paul Johnston
Slide 4 – Business update
Kia ora, and good morning, everyone.
Thank you for joining us for our 2026 half year results.
Slide 5 – Overview
Here is an overview of our presentation today, which will include the key
drivers behind our strong HY26 underlying result, as well as factors that have
impacted reported profit.
We’ll also provide an update on our second half priorities and how we plan to
leverage what makes us different to further enable growth.
Slide 6 - What makes Tower different
Before moving to our priorities, let’s take a moment to highlight what sets
Tower apart.
We are a Kiwi-owned insurer, and our competitive advantages uniquely
position us to meet the ever-evolving needs of our customers.

7

First, in customer experience and technology, we lead with transparency and
simplicity.
Our streamlined platform and product set deliver clearer, more consistent
outcomes for customers. For example, through My Tower, we provide
premium breakdowns, year-on-year premium comparisons at renewal, and our
assessment of natural hazard risks for their homes.
We continue to enhance our digital capabilities - both through My Tower and
our partnerships - enabling more customers to interact with us seamlessly
across channels.
At the same time, our AI-enabled contact centre is improving service quality
and efficiency, ensuring faster, more personalised service for our customers
who call us.
Our targeted approach to risk selection and address-level, risk-based pricing
allow us to price more accurately, remain competitive, and improve the overall
quality of our portfolio.
These capabilities underpin our strategy, giving us a strong platform to deliver
sustainable growth and even better customer outcomes over time.
Slide 7 – Our performance - strong operational and business performance
Tower has seen strong operational and business performance in the half year.
We delivered a solid underlying result, alongside strong customer and policy
growth, and a subdued loss ratio.
Reported profit reflects a number of non-underlying items, including customer
remediation and other one-off costs, which I’ll come to shortly.
On the back of this performance, the Board has declared a fully imputed
interim dividend of 5 cents per share.
Simon will take you through the financials in more detail.
Slide 8 – Factors influencing HY26 result

8

The first half of FY26 unfolded in a more challenging external environment,
marked by pricing pressure and continued global volatility.
Tower’s performance was influenced by strong customer growth - particularly
in lower risk segments which reduced average house premiums, as well as an
increase in weather events following the relatively benign conditions of FY25.
Despite these challenges, our focus on delivering simple and rewarding
customer experiences drove solid policy growth in the half, largely driven by
our partnership channel. We continued to attract and retain quality risks in a
competitive market.
Weather activity increased compared to the prior period, driving higher BAU
claims costs. In the half, New Zealand and the Pacific experienced several
substantial storms, with Tower recording four of these as large events in New
Zealand.
Overall, the result reflects a shift away from the unusually benign conditions of
the prior period, with underlying performance supported by portfolio quality,
growth, and continued execution of our strategy.
Slide 9 – Actively managing economic headwinds
We continue to take decisive action to position Tower for stronger outcomes
and to deliver value to both our customers and shareholders.
This includes passing underwriting and cost efficiencies on to customers as
premium savings, which is helping to support strong policy growth even
through the economic slowdown.
We are also managing the impacts of weather events through our address-
level pricing, supported by a large event allowance of $45 million for the full
year.
Our digital and technology investments continue to drive efficiencies, while we
optimise our reinsurance programme to strengthen margins.

9

Finally, we’re maintaining a conservative investment portfolio to help reduce
volatility.
These actions demonstrate our focus on active management through the cycle,
while continuing to build a stronger, more resilient business.
Slide 10 - Policy growth in a competitive market
Despite a soft rating cycle, increased competition, and broader economic
turbulence, Tower continued to deliver disciplined growth in the half –
benefiting our customers along the way.
We welcomed 15,000 new customers, with growth particularly strong in house
policies, alongside more moderate growth in motor and contents.
This performance aligns with our strategy to grow our home portfolio, where
customers tend to hold multiple policies and demonstrate stronger retention
over time.
Importantly, we are achieving this growth alongside continued improvements
in risk quality. In the half, our expected average annual loss from four key
perils reduced, and this is also reflected in our new business mix, with over
90% of new policies rated as low or very low risk for flood, sea surge and
landslide.
This is driven by our deliberate strategy to grow where we see the strongest
long-term value, while strengthening the resilience and quality of our portfolio.
Slide 11 - Improvements in customer experience and efficiency
In customer experience and efficiency, we are seeing clear benefits from our
continued investment in technology, data and automation.
Customer outcomes continue to improve, reflected in a higher net promoter
score, improved service delivery and a more seamless customer experience
across all channels.

10

Digital adoption is also progressing strongly. Across New Zealand, a growing
proportion of customer tasks are completed digitally, making it easier for
customers to access and manage their insurance while also helping to reduce
our cost to serve.
Efficiency gains from our AI-enabled contact centre, introduced in late FY25,
continue, with average call handling times reduced by two minutes.
In claims, our motor assessing platform integration is delivering meaningful
reductions in manual effort. During the half, we completed our first fully
automated motor claim - from lodgement to approval and payment - with no
manual intervention. We also expanded automation across the claims process.
Finally, we streamlined our geographical operations by closing our Rotorua
office, improving efficiency and customer experience through centralised
contact centres.
We’re proud to see these efforts recognised through recent industry awards.
Last week, the Kiwi Adviser Network named Tower the 2026 Outstanding
Referral Partner. In April, Canstar awarded Tower Home and Contents Insurer
of the Year for 2026 - the third consecutive year. Tower also received a 2026
Canstar Innovation Excellence Award for our launch of sea surge and landslide
risk-based pricing.
Slide 12 - Large event claims
Weather activity increased in the half compared to the unusually low levels last
year.
We experienced four large events in New Zealand during the period, and one
large event early in the second half.
This marks a return to more typical conditions, and remains within the range
we plan for through our large event allowance. Our reinsurance programme
ensures we remain well positioned to respond to any further events.

11

Slide 13 – Customer remediation programme
Tower remains focused on putting things right for customers who did not
receive the full discounts or benefits they were entitled to through our
customer remediation programme.
The increase in the remediation provision predominantly related to a now-
resolved, historical discount error, where a minimum premium embedded in
pricing algorithms prevented eligible discounts from being fully applied. Most
refunds owed to customers related to a legacy system which required complex
analysis to complete.
Remediation actions are well advanced. Our focus is on proactively contacting
affected customers, apologising, and progressing payments, while continuing
to engage constructively with the regulator.
The root causes of remediations are largely linked to migration, system and
process issues, and this programme also reflects our broader investment in
strengthening systems and controls to prevent recurrence.
Beyond remediation, we have also recognised additional non-underlying items,
including for the closure of our Rotorua office, partly offset by a small release
related to Canterbury earthquake provisions, as well as other costs linked to
regulatory change and intangible asset write-offs.
Slide 14 - Financial performance
I will now hand you over to our Interim Chief Financial Officer, Simon Hoole
who will talk you through the details of our financial performance this year.
Slide 15 – Group underlying performance
Thank you, Paul.

12

GWP growth of 1% was challenged due to lower average premiums from
growth in lower risk properties which attract lower pricing, and increased
competition, partially offset by increased policy volumes.
The BAU claims ratio increased to 44% from the unusually low 38% reported in
the prior comparable period, driven by targeted rate decreases and increased
storm activity. The ratio remains favourable relative to long-run averages of
between 48% and 50%. Tower expects it to continue to trend upward through
the remainder of the financial year while remaining below long-term averages.
Large event costs for the half were $18.5m.
The MER increased to 31%, reflecting the soft premium cycle and continued
investment in technology and growth initiatives. Tower’s AI-enabled contact
centre platform reduced the time customers spent interacting with the
company by approximately 15% in the first seven months following launch.
Overall, we are reporting a solid underlying profit performance for the half
year ended 31 March 2026, delivering underlying net profit after tax (NPAT) of
$36.8 million and a reported profit of $22.9 million.
Reported profit includes strengthening of provisions for customer remediation
costs, costs associated with the closure of our Rotorua office and software
impairment.
Slide 16 – Movement in underlying NPAT
Underlying NPAT was $36.8 million in HY26, compared with $61.7 million in
HY25.
Starting with business growth, we saw a modest positive contribution of $0.7
million, due to higher net insurance revenue, offset by the associated increase
in claims and operating expenses.
BAU claims then reduced earnings by $11.9 million, as prior year rating
reductions earned through HY26, alongside a return to more normalised
weather patterns and claims frequency in the current period.

13

Large event costs also had a material impact, reducing earnings by $11.1
million year-on-year, with large event claims of $18.5 million before tax
compared with $3 million in the prior period.
Investment income was a further headwind, decreasing by $3.5 million,
reflecting lower yields and mark-to-market impacts during the half.
Overall, the year-on-year movement for the half is in line with the shift from
unusually favourable conditions in HY25 to a more normalised operating
environment in HY26, while still demonstrating the underlying resilience of the
business.
Slide 17 – Rating pressure impacts GWP growth
Premium growth for the half was 1%, in line with the softer rating environment
we are currently seeing across the market which is highlighted in the bottom
chart.
This continues to provide some relief for customers following the premium
increases experienced in recent years.
Importantly, this outcome needs to be viewed alongside strong policy growth.
In New Zealand, house GWP increased by 2%, supported by 9% growth in
house policies, as we continue to prioritise this segment.
In motor, GWP was broadly flat, despite 3% growth in policies, consistent with
decisive rating actions, where we have reduced premiums to balance growth
and competitiveness in a softer market.
Our Partnerships channel continues to perform well, delivering 8% GWP
growth and contributing to overall portfolio expansion.
Retention has also improved, increasing to 79%, up from 78% in the prior
period, in line with our focus on delivering customer value and service
improvements.

14

On the right-hand side, you can see our GWP trend over time, with steady
growth from $216 million in HY22 to $301 million in HY26.
Finally, the chart below highlights the shift in effective average premium, with
downward pressure across both house and motor as market conditions have
softened.
While rating pressure is moderating premium growth, we are continuing to
grow volumes in a disciplined way, supporting long-term portfolio quality and
customer outcomes.
Slide 18 - Higher frequency and severity of claims
The BAU claims ratio increased to 44% in HY26, compared with 38% in the
prior period. This shows a return towards more normalised levels, as the
benefit of prior pricing actions in HY25 begins to earn through.
Across both motor and house portfolios, we have seen an increase in claims
frequency and severity. This has been driven primarily by a higher number of
weather-related events in the half, reinforcing the importance of our ongoing
focus on pricing discipline, portfolio quality and risk selection.
Looking first at motor, frequency has increased to closer to historical levels at
12.4%, while severity is at just over $3100 per claim.
In house, frequency has increased to around 7%, due to a higher incidence of
smaller weather-related claims, while severity has also increased to just over
$4,000 per claim.
In addition to BAU claims, we experienced four large events in the half, with an
estimated cost of $18.5 million.
Slide 19 – Stable management expense ratio
MER increased by 1% to 31.4% in HY26, within our FY26 MER guidance of 31%
to 32%.

15

As shown in the bridge, this reflects a number of offsetting movements.
Scale efficiencies from business growth reduced MER by 0.4%. This was offset
by increases in marketing spend to support revenue growth and strengthen
our brand in a competitive market, and software costs to improve the
customer experience and streamline processes.
This modest increase in MER is consistent with our deliberate investment to
support future growth, efficiency and resilience, while continuing to capture
underlying scale benefits from the business.
Slide 20 – Conservative investment strategy
Net investment income for the half was $5.1 million, which is $4.9 million
lower than HY25.
This is driven by a combination of lower investment balances, reduced yields,
and mark-to-market losses from market volatility during the period.
Tower continues to maintain a conservative investment strategy, focused on
high credit quality and liquidity. Our portfolio is predominantly invested in
highly rated bank and government securities, and we maintain a relatively
short duration, with a target of around six months.
This positioning helps manage risk and reduces exposure to market volatility,
while providing flexibility as interest rate conditions evolve.
Looking at the chart on the left, core portfolio yields have declined from their
peak in early FY24, although there has been a modest uptick more recently,
with the running yield at 3.4% as at 31 March 2026.
Looking forward, we expect yields to move broadly in line with OCR settings,
and for investment income to remain influenced by both rate movements and
broader market conditions.
Slide 21 - Capital and solvency position

16

Tower’s capital position remains strong, with a solvency ratio of 143% as at 31
March 2026.
Our adjusted solvency margin was $90.1 million at balance date, stated net of
the interim dividend of 5 cents per share.
This remains comfortably above our internal target solvency margin of $84.3
million, providing a solid buffer to absorb volatility and support ongoing
growth.
We were also pleased to have our A- financial strength rating reaffirmed by
AM Best in April 2026, highlighting the resilience of the balance sheet.
Tower continues to maintain a strong capital position and financial flexibility,
supporting both regulatory requirements and our ability to execute on our
growth strategy.
Slide 22 – Looking forward
Thank you. I will now hand back to Paul who will provide an update on our
guidance and second half priorities.
Paul Johnston
Thank you, Simon.
Slide 23 – Second half priorities
As we move further into the next phase of our strategy, we remain focused on
delivering sustainable growth, while continuing to invest in digital technology
and innovation to provide easier, faster and more personalised experiences for
customers.

17

A key priority is launching our new partnership with Westpac, alongside the
referral of the Kiwibank back book. Together, these initiatives are expected to
support customer growth and broaden our distribution channels.
We are also enhancing our contact centre capability and driving further digital
adoption to improve both efficiency and the overall customer experience.
We remain focused on progressing our use of AI, embedding it carefully in
areas that deliver clear value - particularly in operational efficiency and service
delivery.
Alongside this, we are building stronger customer data foundations to enable
more personalised and targeted customer experiences over time.
Finally, we’ll continue to progress customer remediation and implementation
of regulatory changes, ensuring we meet our obligations and strengthen trust
with customers and stakeholders.
Slide 24 – FY26 guidance and future targets
For FY26, we now expect GWP to grow by low-single digits, down from our
previous guidance of 5%-10%, due to lower average premiums, and subdued
market conditions.
While we expect benefits from digitisation and efficiency initiatives to emerge,
our ongoing investment in growth, technology and customer experience is
anticipated to keep the MER between 31% and 32%.
This supports underlying NPAT, excluding large events, of between $87 million
and $97 million.
We have maintained our large event allowance at $45 million for the year. On
a statutory basis, assuming full utilisation of that allowance, we expect
underlying NPAT to be in the range of $55 million to $65 million.

18

Any unused portion of the large event allowance at year end would flow
through to improve the full-year result.
Our combined operating ratio is expected to be between 86% and 88%,
supporting strong underlying profitability.
Reported NPAT will continue to be impacted by non-underlying items,
including customer remediation activity and costs associated with regulatory
change.
Looking further ahead, we have set clear medium-term targets for FY28.
We are targeting GWP of more than $750 million, representing a compound
annual growth rate of over 7.5%.
Over the same period, we expect further efficiency gains, with the
management expense ratio improving to between 28% and 30%, and a
combined operating ratio of between 85% and 87%.
Overall, these targets reflect our confidence in the strategy and the strong
foundations we have built, positioning Tower to deliver sustainable growth and
long-term value.
Thank you for your time this morning, I will now hand back to the operator to
ask for questions.

---

Distribution Notice


Classification: Sensitive



Section 1: Issuer information
Name of issuer Tower Limited
Financial product name/description Ordinary Shares
NZX ticker code TWR
ISIN (If unknown, check on NZX
website)
NZTWRE0011S2
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 11/06/2026
Ex-Date (one business day before the
Record Date)
10/06/2026
Payment date (and allotment date for
DRP)
25/06/2026
Total monies associated with the
distribution
1

$17,170,568

Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.06944444
Gross taxable amount
3
$0.06944444
Total cash distribution
4
$0.05000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.00882353
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Yes

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

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

28%
Imputation tax credits per financial
product
$0.01944444
Resident Withholding Tax per
financial product
$0.00347222
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)

Start date and end date for
determining market price for DRP

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

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

DRP strike price per financial product

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

Section 5: Authority for this announcement
Name of person

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

21/05/2026





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