Insurer clocks $36m profit
NZX-listed insurer Tower has posted a reported profit of $36 million for the six months to the end of March this year, which marks a turnaround from a $5.1m loss in the same period a year ago.
The company attributes the latest half-year result to improvements in business-as-usual (BAU) claims performance, premium growth and operational and digital efficiencies.
Tower also notes the corresponding period for 2023 was impacted by catastrophe events such as Cyclone Gabrielle and the Auckland anniversary floods.
Its revenue for the half year to March 2024 was $269m, an increase of 19 per cent year-on-year, and underlying net profit after tax (NPAT) was $36.6m versus a $5.1m loss in the previous corresponding period.
Gross written premiums (GWP) were also up 20 per cent to $291m over the same timeframe.
Customer numbers fell by one per cent from 312,000 to 309,000, which Tower says reflects a drop in insurance for high-theft vehicles.
Blair Turnbull, pictured, chief executive, adds: “The business is well positioned to deliver sustained premium growth through innovating our products and services and improved efficiencies, and ultimately attractive long-term shareholder returns.”
The company’s full-year guidance is for underlying NPAT to be more than $35m in the 2024 financial year and GWP growth is forecast to be between 10 and 15 per cent.
