I thought this y/e 30 September result was a decent one with a number of signals that TWR is incrementally building a worthwhile business. That said, it is a good year to now have behind them, with the $5.5m net additional provisioning for the remaining Canterbury earthquake claims (when will the so-called over caps cease arriving?) and $2.6m for customer remediation for errors in applying the multi-policy discounts.
Forward dividend guidance is to maintain the current 6.5cps dividend (but will still be unimputed). The disposal of the PNG interest has enabled the digital rollout to the rest of their Pacifica involvement and a major hub is to be established in Fiji.
Gross Written Premiums are going gangbusters, as are MyTower registrations and the partner relationships, so seizing market share in the broader general insurance sector. Today's (and earlier) OCR increase means investment income will rise sharply in FY23 from FY22. Imagine if the $30m set aside for large events isn't required or is only partially required (the 5-year average is $16m) - what could NPAT look like then?
And they have the best IT platform to underpin growth going forward. It won't all be "blue sky" no doubt, but the foundation is certainly in place after a decade trying to get out from under the Canterbury earthquake boulder.