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.
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