Tower says Christchurch quake claims likely to top $5 mln

Tower says Christchurch quake claims likely to top $5 mln, trigger reinsurance

Feb. 22 (BusinessDesk) - Tower Ltd. says 'significant damage' from Christchurch's latest earthquake is likely to trigger its reinsurance arrangements under which the claims costs payable by the insurer are capped at $5 million.

Tower said the after-tax impact of claims is expected to be about $3.5 million.

Shares of the insurer fell 4.5% to $1.90 on the NZX. The insurance cap is being triggered for the second time in five months after the firm was forced to pay out on $5 million of losses from the original quake last year.

(BusinessDesk)

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