Sharechat Logo

Tower Limited (NZX: TWR) FY21 Results Announcement to Market & Capital Return

Wednesday 24th November 2021

Text too small?

Kiwi insurer, Tower Limited (NZX/ASX:TWR) has today reported full year profit of $19.3m, up 72% from $11.2m at the full year 2020. Underlying profit including large events was $20.8m, compared to $28.4m in the prior year.

The Board has declared a final dividend of 2.5 cents per share, bringing total dividends for FY21 to 5 cents per share. As at 30 September Tower New Zealand Parent’s solvency ratio was 271% and the company was holding $56.6m above its target solvency margin. Considering current opportunities and the company’s capital position, the Board has proposed the return of $30.4m excess capital to shareholders by way of a compulsory share buyback.

Tower CEO Blair Turnbull said the full year result reflected challenging external factors first signalled at the half year. These included an increase in large events and large house claims, Covidrelated claims costs inflation, and lower investment income.

“Tower has navigated a difficult year. Our focus has been on addressing a range of external challenges, while supporting our customers and delivering on our technology and distribution growth strategies,” said Mr Turnbull.

FY21 large events comprised a $13.9m impact up from $9.7m in the prior year and included the large fire at Lake Ōhau and severe floods in Napier in late 2020, and Westport flooding in July. The frequency of large house claims, predominantly driven by house fires, continued to increase in the second half rising 61% over the year to 92, totaling approximately $21.1m. Inflationary pressures also continued to challenge claims costs which increased $17.1m in total to $166.8m, while net investment income reduced by $5.1m to $0.2m for the year.

Please see the links below for details

Cover Page

Media Release

Results Announcement

Financial Statements

Results Presentation


NZX Distribution Notice

Source: Tower Limited

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Australian First: Ebonex, cryptocurrency platform, partners with Mastercard - NASDAQ ANNOUNCEMENT
PCT - Strong leasing performance supports FY22 result
AIA - FY22 Annual Results
Skellerup reports another record result
Seeka Announces Result for the Six Months to 30 June 2022
CMO - Preliminary result and dividend
August 18th Morning Report
FPH - Notification of Issue of Securities
Fletcher Building reports FY22 result, final dividend 22cps
NZA - Resignation of Auditor