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

 


UPDATE: Tower's minimum solvency reduced as claims progress

UPDATE: Tower's minimum solvency reduced as Canterbury claims progress

(Adds latest claims progress in 3rd graph, updates shares in 6th)

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 85 percent of its cases in August. 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 rose 2.7 percent to $1.92, and have gained 8.7 percent in the past year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news