Tower NZ has completed its 2012 financial year reinsurance program, but admits the premiums will be a lot higher than currently being paid.

An announcement to the New Zealand Stock Exchange today does not detail the actual costs, but does say the policy excess will be $NZ6.7 million ($5.2 million) for the current financial year compared to $NZ5 million ($3.9 million) in the previous 12 months ending September.

“The company has increased the premium rates for its house, contents and motor policies, consistent with the market, to adjust for increased reinsurance costs,” the company says.

“Tower remains in a strong position, as shown by its ability to deal with the Christchurch related claims that have arisen during the past 12 months.”