New Zealand insurer Tower says gross written premium (GWP) rose 8% in the first four months of its financial year, and the company remains on track to achieve full-year guidance.

GWP from the core New Zealand book, including from the Youi portfolio purchased last year, increased 11% in the period to January 31. New business through its new digital platform now accounts for more than 55% of GWP, compared to less than 10% in 2016.

CEO Richard Harding, who will retire from the group toward the end of this calendar year, said in a business update at the company’s AGM that the focus remains on transferring all customers to its new digital system.

“Tower is radically different from the company it was four years ago,” he said. “We are now positioned to take on the New Zealand insurance market and challenge the large incumbent organisations who are slow to adapt.”

Tower says losses from the Timaru hailstorm last year had reached $NZ4 million ($3.8 million) pre-tax, leaving $NZ4 million in the allowance for large events for the year to September 30.

Chairman Michael Stiassney told the meeting the insurance sector overall needs to take action to improve its standing following inquiries showing the general public takes “a dim view” of the industry.

But he says a conduct and culture review by the Reserve Bank of New Zealand and Financial Markets Authority did not take into account the negative public perception impact on the industry flowing from the state-owned Earthquake Commission’s (EQC) response to the Canterbury earthquakes.

Mr Stiassny says Tower has “taken to heart” the low esteem in which the industry is held and has conducted its own conduct and culture review.

“While some aspects of our practice need further investigation, our undertaking is to ensure any shortcomings are improved,” he said.