New Zealand insurer Tower now expects underlying net profit of about $NZ83 million ($75 million) for the year ending September.

It had previously estimated more than $NZ45 million ($40.67 million).

An unused large events allowance will increase net profit by $NZ32 million ($28.92 million), Tower says, and business performance has been stronger than expected, particularly in claims.

After allowing for customer remediations and regulatory action, reported profit is expected to be about $NZ74 million ($66.88 million).

Tower will announce its annual results on November 28.