New Zealand insurer Tower’s loss blew out to $NZ11.6 million ($10.7 million) in the half-year to March as unprecedented weather events and a dispute settlement with Pacific Re hit earnings.

The company, the third-largest general insurer in the New Zealand market, reported a loss of $NZ8.2 million ($7.6 million) in the previous corresponding period.

First-half gross written premium grew to $NZ161 million ($148.4 million) from $NZ145.8 million ($134.4 million), but underlying profit after tax declined to $NZ7.3 million ($6.7 million) from $NZ8.1 million ($7.5 million).

The combined operating ratio deteriorated to 94.3% from 91.8%.

Ex-cyclone Gita and other storm events – which Tower has described as “severe and unprecedented” – cost the insurer $NZ9.1 million ($8.4 million) and had a $NZ5 million ($4.6 million) after-tax impact on the results.

Storm and other weather impacts have already exceeded last financial year and Tower is pricing further aggregate reinsurance for the remaining fourth months of 2017/18.

The Pacific Re settlement, regarding an adverse development policy, has a $NZ16.2 million ($14.9 million) after-tax impact.

Tower set aside a further $NZ2.3 million ($2.1 million) for Canterbury provisions in the first half as efforts to settle quake claims make progress.

The number of open claims has declined 46% to 253, including 167 cases progressing towards settlement.

“Tower’s outstanding case estimates have almost halved since September 2016,” the insurer says. “This demonstrates that solid progress is being made.”

The insurer backs the launch of an independent inquiry into the Earthquake Commission’s (EQC) performance, calling it an “important first step”.

“EQC Act reform will assist in ensuring past experience is not repeated and that the pitfalls and problems associated with the EQC set-up and the 2010 model can be avoided.

“Tower strongly believes the Kaikoura [quake] model is successful and that any reform of the EQC must include these changes.”