New Zealand general insurer Tower expects the financial impact from recent weather events to be about $NZ5 million ($4.65 million) after tax.

New year storms are expected to cost $NZ1.4-$NZ1.8 million ($1.3-$1.67 million) after tax from about 300 claims, while Ex-Cyclone Fehi is estimated to cost $NZ2.2-$NZ3.2 million ($2.04-$2.97 million) after tax from 150 claims.

It is too early to calculate damage from Tropical Cyclone Gita, which has passed through Samoa, American Samoa and Tonga and could still affect Fiji.

Tower has a non-catastrophe reinsurance program under which it absorbs the first $NZ7 million ($6.5 million) of pre-tax losses and reinsurance covers the next $NZ10 million ($9.3 million), up to $NZ5 million per event.

Weather event costs in New Zealand may have already reached $NZ7 million.

Should damage from Gita exceed $NZ5 million, Tower may be exposed to a further $NZ3.5 million ($3.25 million) after tax, prior to catastrophe cover commencing.

The insurer retains full catastrophe cover of $NZ798 million ($742.25 million) with appropriate back-up cover.