Tower CEO David Hancock says gross written premium growth in New Zealand is returning to about 5%, last seen before the Canterbury earthquakes.

He told last week’s AGM in Auckland that the country’s general insurance industry remains “dynamic” and Tower has growth strategies based on customer retention and its brand.

The general insurance arm has had sustained premium growth over the past three years.

“Premium growth has more than covered the increased cost of reinsurance that resulted from the impact of the Canterbury earthquakes, and affected all insurers in New Zealand.”

Mr Hancock says Tower is the fourth-largest NZ general insurer by gross written premium, with market share of 4.7%.

It holds 6.4% of the personal motor market and about 10% of the home and contents markets.

Chairman Michael Stiassny told the meeting Tower has settled 78% of its Canterbury earthquake claims and is on track to complete the remainder by the end of next year.

Tower sold most of its life business as well as its investments and health businesses last year. Mr Hancock says its strategy to build the general insurance operation includes product-bundling to sell customers more than one cover and reinforcing the value of policies.

He says the direct and alliance sales channels offer significant growth opportunities and the company is gaining a better understanding of customers through data mining.