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


Tower says summer storms will cost about $5 million

Tower says summer storms will cost about $5 million

By Sophie Boot

Feb. 13 (BusinessDesk) - Auckland-based insurer Tower said recent storms will have a financial impact of about $5 million after tax.

The company said it received about 300 claims as a result of the New Year storms, and estimates that will cost it between $1.4 million and $1.8 million after tax. It has received 150 claims as a result of ex-cyclone Fehi, which hit the South Island earlier this month, and says the financial impact of those will be between $2.2 million and $3.2 million after tax.

Tower said it is too soon to know the extent of the damage done by Cyclone Gita, which hit Tonga last night having already passed through Samoa and American Samoa and may yet impact Fiji.

However, the insurer said it has a non-catastrophe reinsurance program meaning it absorbs the first $7 million of before-tax losses and reinsurance then covers the next $10 million, up to $5 million per event.

"Weather events in New Zealand may have already reached $7 million," Tower said. "Should damage from Tropical Cyclone Gita exceed $5 million, Tower may be exposed to a further $3.5 million after tax, prior to catastrophe cover commencing. Tower retains full catastrophe cover of $798 million, plus appropriate back-up cover."

The shares last traded at 65 cents, down 28 percent from a year earlier. The stock pulled back sharply last year after the Commerce Commission declined a proposed merger with major insurer Vero New Zealand in July. A High Court appeal of that decision was scheduled to begin early this year but this was abandoned.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Conservation Win: Mice Eradicated From Antipodes Island

In a world-leading conservation effort, mice have been successfully eradicated from Antipodes Island in the New Zealand Subantarctic, Conservation Minister Eugenie Sage announced today... More>>


Transport Tech: Roadmap To Harness $1.5 Bn Sector

A new Future Technology Leadership Group will help New Zealand harness some of the $1.5 billion a year estimated value to the economy from Intelligent Transport Systems (ITS) as well as the social benefits they create... More>>


Economy: GDP Rises On Strength In Services

The economy, as measured by gross domestic product (GDP), grew 0.6 percent in the December 2017 quarter, Stats NZ said today. Growth was driven by increases in the service industries but was tempered by falls in the primary sector. More>>


Dolphins In Danger: More measures to protect

Fisheries Minister Stuart Nash and Conservation Minister Eugenie Sage are accelerating work to improve protection of the nationally endangered Hector’s dolphin, after five were accidentally killed in a fishing net off Banks Peninsula. More>>


Innovative Partnerships:Govt Launches R&D Programme

Research, Science and Innovation Minister Megan Woods has today formally launched the Innovative Partnership programme which aims to attract future-focused international innovators and firms to undertake R&D and develop their products in New Zealand.... More>>


Planes And Oil: Current Account Deficit Widens To $2.0 Billion

New Zealand's seasonally adjusted current account deficit widened to $2.0 billion in the December 2017 quarter, Stats NZ said today. The $407 million increase in the deficit was mainly driven by New Zealand importing aircraft and other transport equipment, and crude oil. More>>


RMTU: Lyttelton Port Strike

Sticking points now include LPC’s insistence on docking the pay of workers who didn’t take part in strike action last week – because they withdrew the strike notice. “In our view this amounts to an illegal lockout.” More>>


"Licensed To Krill": Greenpeace Report On Antarctic Fishing

A new Greenpeace investigation has exposed the environmental risks of the fast-growing krill industry in one of the most pristine parts of the Antarctic Ocean. More>>