Originally Posted by
Jaa
Not exactly, they are going to top up their catastrophe insurance. How much will that cost?
Is it just me, or does $934m of yearly catastrophe cover seem a bit inadequate anyway? I know EQC cover is increasing to $300k but that's still not a lot of houses.
The $200k + GST applies to all houses so from TWRs perspective, not important.
Also remember Tower has not had an annual result in 12 years unaffected by "one-off" unexpected, unbudgeted cost increases from the Christchurch earthquakes. Despite every year adding excess contingencies over and above the actuarial estimates. There are STILL open claims relating to it.
Yes, but still paying 10% + gross dividend so, as costs increase, so do premiums - TWR are a ticket clipper ie in the long term, the higher the claims the more the profits.
EQC's Natural Disaster Fund btw is only $250m with $7.2b of reinsurance. Only enough to cover 25k claims for the full $300k.