GENERAL: TWR: TOWER Limited - impact of claims relating to CHC earthquake

6 Sep 2010 11:49 am

TWR 06/09/2010 11:48 GENERAL

REL: 1148 HRS Tower Limited

GENERAL: TWR: TOWER Limited - impact of claims relating to CHC earthquake

TOWER Limited expects that insurance claims arising from the Christchurch earthquake will cost the company NZ$5 million before tax.

While the total of possible claims is not yet known, with customers continuing to notify TOWER of damage, TOWER expects that once all claims are received and assessed, the total payable will trigger TOWER's re-insurance arrangements. The effect of this is that losses payable by TOWER will be capped at NZ$5 million. The after-tax effect of this is expected to be around NZ$3.5 million.

TOWER's Group Managing Director, Rob Flannagan said "The earthquake has been a shock to many of our customers, and we have received hundreds of calls over the weekend from worried households and businesses. It will take some time for assessments of damage to be completed and costs of repair to be known in full. While this is a new experience for many of those affected, TOWER itself is in the business of insurance and the cost is part of our normal financial planning."

For further information contact Rob Flannagan Group Managing Director +64 9 369 2057 End CA:00199343 For:TWR Type:GENERAL Time:2010-09-06 11:49:04

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