Tower doubles underlying net profit

Insurer Tower has nearly doubled its full-year underlying net profit in the absence of large-scale claims, as well as a stronger-than-expected business performance.

Tower said bottom-line net profit was expected to be about $74 million for the year ended September, compared with a loss of $1.23 million the year earlier.

Underlying net profit was expected to be about $83m, compared with its earlier guidance of $45m, which assumed provisions of $45m for large events, which did not materialise.

A number of large-scale damaging events, including Cyclone Gabrielle and the Auckland floods, cost the company more than $55m in 2023, compared with $19m the previous year.

The 2023 result also included an increase in payments related to customer remediations and associated costs, including those related to regulatory action.

The company was not available for further comment ahead of its full-year financial results, expected to be announced on 28 November.