Tower faces hit of up to $5.8 mln from storm claims

Wednesday 24th June 2015

Tower, the general insurer, faces a financial hit of up to $5.8 million from storms across central New Zealand this week, after receiving more than 200 claims from the event.

The Auckland based firm said the financial impact of the storm after tax will be between $2.6 million and $5.8 million, with the top limit capped by Tower's reinsurance programme. The storms hit the west coasts of the upper South Island and the lower North Island, causing widespread flooding and prompting Civil Defence Minister Nikki Kaye to call local states of emergency in Wanganui, Taranaki and Rangitikei.

The insurer said it brought in extra assessors and claims staff to speed up the process for affected customers.

Tower shares dropped 0.9 percent to $2.19, and have gained 2.8 percent this year.

BusinessDesk.co.nz

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