Tower completes renewal of FY27 reinsurance programme

Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
Level 5, 136 Fanshawe Street
Auckland 1142, New Zealand
ARBN 645 941 028
Incorporated in New Zealand
21 September 2026
Tower completes renewal of FY27 reinsurance programme
Kiwi insurer Tower (NZX/ASX: TWR) has successfully renewed its reinsurance programme for the financial year
ending 30 September 2027 (FY27), securing comprehensive cover at competitive rates across its home, motor,
boat, and commercial portfolios across New Zealand and Pacific markets.
Key details of the FY27 reinsurance programme include:
•Catastrophe upper limit increased to $970 million, up from $915 million in FY26
•Improved structure for third catastrophe limit, supporting efficiency while increasing cover to $100
million, up from $85 million in FY26
•Catastrophe event excesses remain at $20 million, unchanged from FY26
•As in previous years, the $970 million catastrophe limit includes a pre-paid reinstatement, providing
cover for two large catastrophe events.
Tower estimates its reinsurance premium expense will represent 9.5% of Gross Written Premium in FY27,
down from 10.6% in FY26.
Tower CEO Paul Johnston says the reduction reflects a combination of favourable global reinsurance market
conditions, Tower’s strong business performance, and the FY25 and FY26 expansion of its risk-based pricing
capability across additional perils.
“Our disciplined approach to risk selection, pricing and portfolio management has helped us secure a strong
outcome for our FY27 reinsurance arrangements, supporting Tower’s ongoing resilience and ability to offer
competitive pricing for customers,” he says.
Tower has revised its approach to securing its third catastrophe limit of cover. In prior years, Tower purchased
this cover annually as a prepaid limit. For FY27, Tower has secured this cover on pre-agreed terms, payable if
two catastrophe events occur.
Tower has also continued to strengthen its relationships with global reinsurers, with several partners
committing to new multi-year agreements. These arrangements provide greater certainty around future
reinsurance costs and catastrophe excesses.
Ends.
This announcement has been authorised by: Paul Johnston, Chief Executive Officer, Tower Limited
For media enquiries, please contact:
Emily Davies
Head of Corporate Affairs and Sustainability
+64 21 815 149
Emily.Davies@tower.co.nz
For investor enquiries, please contact:
James Silcock
Head of Strategy, Planning and Investor Relations
+64 22 395 9327
James.Silcock@tower.co.nz