TWR - Tower Insurance.

[peat]

nearly doubled this calendar year and most of that in the last few months
looks a little like a blow off top to me.

[Sideshow Bob]

nearly doubled this calendar year and most of that in the last few months
looks a little like a blow off top to me.

Google says up 79.39% in the past 12 months.

Still, hard pleasing some people.

"This is our year"

[Southern Lad]

I assume it will follow that an increase in gross written premiums means that Tower now has more risk to manage and therefore the capital adequacy amount required by regulators will also increase, so not all of the FY24 free cashflow is available for distribution to shareholders.

Of course that assumes Tower are growing their book not just charging more for covering the same risk.

Inflation will no doubt increase the cost of meeting claims even if the headline total loss covered in each policy doesn’t increase.

Exiting some of the more risky policies should presumably be taken into account for capital adequacy purposes.

[ronaldson]

Not sure paying unimputed dividends currently would be a great use of spare cash, especially as any FY25 dividend/s are now likely to be at least partially imputed.

The March 2022 1 for 10 Capital Return at 72cps is now looking like a great use of surplus funds. A similar action at present prices would obviously cost more, although the shares on issue now total roughly 379m as opposed to the 421m on issue before that 2022 corporate action.

We now have a 39c tax bracket in this country, which has recently been extended to apply to Trustee income. A lot of folk/investors are looking more closely at tax liability on income now and the TWR Board will be aware of that, and possibly even personally affected, so maybe don't expect a bumper dividend this time?