Nothing from Tower so far about the cyclone. Got to assume there will be more than $12m of claims and their 2nd catastrophe cover will now be triggered.
Key questions:
1) Did they replace the catastrophe cover used by the Auckland event before the cyclone hit?
2) If not, will they now need to buy cover for an additional two events? If so, how much will the delay cost them?
3) If not, Tower is currently left with only their 3rd, final and markedly reduced $45m of cover and even then only if Auckland flood claims stay below $889m.
See page 19 of their FY presentation.
Another disaster before they buy more cover and it could be the end of Tower, a modelled 1 in 1000 year probability.
But they are just a ticket clipper right?