Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tower's minimum solvency reduced as quake claims progress

Tower's minimum solvency reduced as Canterbury claims progress

By Suze Metherell

Aug. 22 (BusinessDesk) - Tower's minimum solvency margin has been reduced by $30 million as the Reserve Bank relaxes the amount the insurer needs to have on hand as it progresses through its Canterbury earthquake claims.

The general insurer is now required to carry a minimum of $50 million, from a previous $80 million, to retain its insurance licence from the central bank, it said in a statement. According to Tower's website it carried a group solvency of $147.4 million at March 31, 2014. In 2010 and 2011 New Zealand's second largest city, Christchurch and its Canterbury surrounds, were devastated by three earthquakes. The cost of the subsequent rebuild has been estimated at $40 billion, according to the Reserve Bank.

Tower expects to complete all Canterbury earthquake related claims by 2015, having settled 81 percent of its cases. In the six months ended March 31, Tower said it has $22.1 million in claims related to the earthquake, all covered by reinsurance, while in the year ended Sept. 30, 2013 it had a gross claims of $72.2 million in relation to Christchurch.

"We're pleased that our efforts in resolving claims have been recognised and this capital will be released," said chief executive David Hancock. "We will continue to keep the RBNZ informed on the progress of our programme of work in Canterbury."

Tower has sold off its life, health and investment units to focus on general insurance, and has flagged a return of capital to shareholders once its Christchurch claims are completed.

Tower shares last traded at $1.87, and have gained 8.7 percent in the past year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news