I know...Christ i hate governments.
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I know...Christ i hate governments.
What you think about the half year belg
At least they survived the Chch quake and can cover the $250m in claims
But don't you love it when they try to bamboozle you with science and report a fantastic result if it hadn't been for Christchurch and this little change in discount rate
Like me saying jeez I made heaps this year if only I hadn't spent as much
Never mind the market will LIKE ... you'll be OK
Try and work out how much of the profit came from investing the premiums .... thats a good exercise
Not a bad result in the circumstances and the dividend will keep the loyal shareholders happy. Very annoying to see their accounts - exclude (or normalize) Christchurch earthquake event. Why? They are a pure insurer after all, so why try to exclude natural disasters! They should be expecting the unexpected:(. FUM have grown thanks to Kiwisaver.
Belgarion..
You say in regard to Tower .
" and a much needed source of additional revenue (i.e. growth). "
Is Tower in declining growth ??
Has Tower got it's back to the wall ??.
Why ??..
Is Tower in need of outside growth ??..
Are they incapable of stepping in to this uncertain market and producing their own growth ??..
Towers price is attractive at this moment with the figures available..
I do not share your optimism that Tower can fill the confidence gap to the NZ public, produced by the CH-CH earthquake.
Few observations about their fund management business, me being their customer. My employer superann (not kiwisaver - with asb) is with Tower and their performance is not worth mentioning. Their global equity investments is through a big fund management company in UK (fee gauging from 2 sources!) - understandably it is very difficult for NZ fund management company to invest in different markets in the world considering the amount of money available to invest and will be very expensive to do so.
What about NZ share fund? They use use local fund managers to invest in NZ but their portfolio matches the index whenever I look at it and the size of the fund is not huge either (20-30million or so) to be able to move the market. Why use the fund managers then? Why cant they go index tracking route and get rid of the managers and will save tax for the investor by doing so.
Consumer NZ website is right in their observation that - 1/3rd of your gain is taxed (active managing), 1/3rd evaporates as fees and investor get to keep the 1/3rd of the gain. If the fund loses money, investor will still lose the fee and will make negligible tax gain.
No wonder why Tower's FUM has shrunk (excluding the kiwisaver).
some interesting price action today. Why?
Is it time to cut my losses on this one? I purchased it a while ago on fundementals when it seemed pretty cheap. This was before the CHCH earthquake. After the action today, I feel like it might be time to just suck it up and pull the plug.
I was getting ready to sell, wanting to get out in the 1.80's, then yesterday happened.
And the govt keeps calling them 'new' earthquakes - good for the reinsurers but not the insurers (can anyone explain how this is good for the claimants - I assume they have to pay a new excess each time - is it becuase the subsequent damage wouldn't be covered?)
I think TWR will have more to fall before it will settle down
I'm no expert on the insurance industry but my "common sense" would tell me to ride it out. There cant be too many other industries that have the "luxury" of having a bad year, increasing the selling price of its product the following year to cover its losses and more and having a captive audience still needing its services.
PS..if it continues its "panic mode" I would be looking at buying in at 1.40