Tower says underlying net profit for the financial year just ended came in between $NZ7 million-to-10 million ($6.54 million-to-$9.34 million), including large events costs estimated at $NZ38 million ($35.51 million). 

In July, the New Zealand insurer had estimated a small loss to a profit of $NZ3 million ($2.77 million). Today, Tower said that due to lower-than-expected costs from Vanuatu cyclone claims and no large events since May 9, costs would be lower than previously allowed for. 

Gross written premiums rose 17% to $NZ526 million ($491.62 million), it says, on rating increases and strong customer retention. 

Tower had been forecasting a profit of as much as $NZ26 million ($23.3 million) a year ago but the insurer has since been hit by inflation, car thefts, supply chain difficulties and extreme weather, including cyclones Judy and Kevin in Vanuatu. 

New Zealand’s North Island was struck by record flooding and devastation from Cyclone Gabrielle earlier this year.  

Tower reported an underlying loss of $NZ3.3 million ($3.1 million) including large events costs for the six months to March.  

Last year, Tower’s underlying net profit was $NZ27.3 million ($25.3 million). 

Tower’s final results statement will be made on November 23. Chairman Michael Stiassny, CEO Blair Turnbull and CFO Paul Johnston will discuss the results and answer questions at 10am. Register here.