TWR - Tower Insurance.

[Rawz]

best strategy is to insure everything with tower and then buy tower shares. Has worked a treat for me

[alokdhir]

Why not self insure? Get third party if you must but for the rest, the known limits just insure yourself. Crazy to give the premium away.

Third party is a must if have any capital on your name then making it comprehensive becomes a no brainer as add on cost is very affordable ...but I do understand your thought ...thats why I am always on maximum excess on all policies ...that much self insurance I can do easily

[SailorRob]

Third party is a must if have any capital on your name then making it comprehensive becomes a no brainer as add on cost is very affordable ...but I do understand your thought ...thats why I am always on maximum excess on all policies ...that much self insurance I can do easily

Hang on, third party is like $130 but full is 10 x that depending on value.

[alokdhir]

Hang on, third party is like $130 but full is 10 x that depending on value.

I was referring to third party ,fire and theft ...yours is only 3rd party liability ...thats 10% of comprehensive agreed ...still I will prefer comprehensive after suffering a total loss of $ 90K vehicle few years back ...seems worth it after that experience !!

[kiwikeith]

I had a weird experience with Tower yesterday. Tower through trademe sent me a renewal notice for landlord house insurance. THey increased the premium by 50% over the previous year. much of the increase was driven by the amount insured. They seem to no longer allow you to insure your house for its market value. The market value is around 1/3 of the replacement value in my case. Anyway I phoned customer service and had a woman representative who kept fading out. Each time I said "I cant hear you" she turned the volume up. On the fifth time she faded out I hung up and redialled. I could hear the second rep and after about 5 minutes she said she would call me back after talking to a risk assessor. She never did call back. Good news (for tower shareholders) is I eventually rebought the insurance. Bad news is that either their or tradme's reps offer a pretty poor customer service experience.

Just to complete the story. The rep did indeed phone back tonight (ie over 24 hours later) to discuss my issue - I told well it is all a bit late as I wound up the excess to the maximum and reduced the insured amount to the minimum allowed online and paid the premium yesterday.

[sb9]

https://www.nzherald.co.nz/nz/earthq...PNBGPWMF73CJM/

"cost of building damage could top $100 billion"

SP down to 78 cents. Bargains, bargains everywhere. No stock is spared from this bear market

Grabbed a decent parcel today at 78c, lets wait and see how it turns out.

[ronaldson]

Grabbed a decent parcel today at 78c, lets wait and see how it turns out.

Good luck! The news is mostly out there already, but actual confirmation later this month along with some accompanying positive comments should/could be worth another 4 or 5 cents quite quickly. Then another wait until end September with fingers crossed that the large events allowance is spared from destruction in the intervening period and that the turn around continues/gains momentum!

[ronaldson]

Would seem likely TWR will be dipping into the FY24 large events allowance now if reports around the current weather event are telling the tale. There may be a preliminary update accompanying the results announcement next week, but it did seem that none utilised so far was to good to continue didn't it?

[Leemsip]

March update from Tower is out. $36m NPAT for the half year, everything going in the right direction, growth in premiums 20%, management expense ratio down pretty significantly, no use of large events re-insurance to date. Guide to further growth in next couple of years, sharpening up their underwriting to avoid risk.

Total EV $300m. If no large event in H2 then roughly $70m NPAT, putting this bad boy on a P/E of 4.
3c dividend declared.

Talked about strategic review ongoing to release share holder value.

[percy]

Excellent Half Year result.
Pleased they are paying a 3 cents divie,
Well done to posters whose posts I followed up by buying a few Tower.Thank you.
http://nzx-prod-s7fsd7f98s.s3-websit...819/419560.pdf

Summary of HY24:
• Gross written premium (GWP) $291m, up 20% on HY23
• Business as usual (BAU) claims ratio 49.7% vs 51.1% in HY23
• Management expense ratio (MER) improved to 31.3% vs 35.0% in HY23
• Large event costs -$1.9m vs $37.3m in HY23, due to a favourable revision to the most recent estimate for
Vanuatu cyclone claims incurred in the prior year
• Customer numbers declined 1% to 309,000 vs 312,000 in HY23 partly due to tightened risk appetite for
high-theft motor vehicle models
• Combined operating ratio (COR) including large events 80.2% vs 104.5% in HY23
• Underlying profit $36.6m vs $3.7m loss in HY23
• Reported profit $36m vs $5.1m loss in HY23
• Interim dividend 3 cents per share.