New Zealand’s Tower has appointed Geraldine McBride as non-executive director and renewed its reinsurance program for the 2023 financial year in what it says is one of the most challenging markets in 40 years.

Tower says it obtained "comprehensive cover with very competitive rates” from reinsurers for its home, motor, boat and commercial portfolios across New Zealand and the Pacific. Tower’s 2023 reinsurance premiums were up 7% from a year earlier, reflecting both business growth and a harder market.

Ms McBride, who will be eligible for re-election in February, has joined the board ahead of the retirement of Warren Lee at the end of next month after seven years. She also sits on the Board of Sky Network Television, has held leadership roles at SAP, Dell and IBM, and is CEO and founder of software firm MyWave.

“Geraldine’s considerable expertise in digital technology, customer experience and transformational leadership will contribute positively to Tower’s continued success and growth,” Tower Chairman Michael Stiassny said.

Tower increased its catastrophe upper limit to $NZ934 million ($822.2 million), while the catastrophe cover excess is in line with previous years at $NZ11.8 million ($10.39 million).

Tower says it will be paying proportionally less for its reinsurance cover at 13.6% of total income, compared to 14.3% a year earlier.

Tower chose not to purchase aggregate cover, which previously covered the insurer for multiple large events losses, saying reinsurers had “moved away from reasonable pricing”. The savings from not buying the aggregate cover will up Tower’s annual budget for large events to $NZ30 million ($26.42 million).