Takeover target Tower has reported a half-year loss of $NZ8.2 million ($7.7 million), with its result hit by the Canterbury and Kaikoura earthquakes, the “Tasman Tempest” storms and Port Hills fires.

The New Zealand insurer’s earnings include increased provisions of $NZ9.8 million ($9.2 million) for the Canterbury quake in 2011 and an impact of $NZ7.2 million ($6.8 million) from the Kaikoura event last year.

The net loss for the half-year to March 31 narrowed slightly from an $NZ8.7 million ($8.2 million) loss in the previous corresponding period.

Gross written premium was little changed at $NZ145.8 million ($137.1 million), while underlying profit grew 7.6% to $NZ8.1 million ($7.6 million).

Underwriting earnings improved and the group says it reduced its expense base and claims costs.

“The continued improvements we’re seeing from initiatives already in place show our strategy is working,” CEO Richard Harding said.

The insurer is the target of rival takeover offers from Canada’s Fairfax Financial Holdings and Suncorp, which has built a 19.99% shareholding.

Tower has so far recommended the Fairfax $NZ1.17 ($1.10) per share offer, which requires a shareholder vote, while it is also waiting for Suncorp to firm up its non-binding $NZ1.30 ($1.22) per share bid following an inspection of the company’s books.

The Commerce Commission will release its report on Suncorp’s proposal by June 30.

“Tower’s board will update the market of any further development in due course, but notes that any vote will occur after June 30,” the company says.

Tower’s full-year earnings were hit last year by provisions related to the Canterbury quakes.

It says it has closed almost one-third of the 564 property claims that were remaining in September, but new “over-cap” claims passed on by the Earthquake Commission continue to be received.