Tower updates FY23 guidance and large events costs

Monday 16th October 2023

Kiwi insurer Tower (NZX/ASX: TWR) has revised its underlying net profit after tax (NPAT) FY23 guidance to between $7m and $10m including large events, up from a range of between a loss of $2m and a profit of $3m, based on preliminary unaudited results.

Tower’s previous profit guidance issued on 19 July assumed full use of its $50m large events allowance. However, due to lower-than-expected costs from Vanuatu cyclone claims, favourable foreign exchange rates and experiencing no large events since May 9, large events costs in FY23 are now expected to total around $38m.

Gross written premiums are expected to total $526m, up 17% on the prior year reflecting rating increases, organic growth, and strong customer retention.

Reported profit will be impacted by additional non-underlying costs including an increase to the customer remediation provision.

More information will be provided in Tower’s FY23 full year results announcement which will be made on 23 November.

ENDS

Tower updates FY23 guidance and large events costs

Comments from our readers

No comments yet