New Zealand insurer Tower’s annual profit jumped to $NZ83.5 million ($76.82 million) in the year to September from $NZ7.1 million ($6.53 million) a year earlier. 

The improvement came because no large events were declared. A year ago, the insurer clocked up almost $NZ56 million ($51.52 million) in large event costs.  

Gross written premium rose 15% to $NZ595 million ($547.4 million), and the combined operating ratio was 79%. The board has approved a $NZ45 million ($41.4 million) share buyback.

“Continued improvements in claims performance, sustained GWP growth and enhanced business efficiencies, along with unusually benign weather in New Zealand and the Pacific, have delivered a positive result for shareholders,” CEO Blair Turnbull said.  

Mr Turnbull says as inflation eases, Tower expects premium increases to “stabilise further”.  

Tower is forecasting net profit of $NZ50-$NZ60 million ($46-$55.2 million) next year, assuming full utilisation of a large events allowance of $NZ50 million ($46 million), plus GWP growth of 10%-15% and a combined operating ratio of 87%-89%.  

Tower’s annual business as usual claims ratio improved to 48.1% from 55.1%, helped by fewer motor theft claims due to stricter underwriting and lower crime rates, and the better weather. 

Its customer numbers were down 2% to 305,000, partly due to tightened risk appetite for high-theft vehicle models.

Tower’s Suva hub has been expanded and is now answering more than half of all New Zealand customer sales and service calls.