After a tumultuous year of thwarted takeover bids and uncertainty, New Zealand’s third-largest general insurer Tower has reported strong growth and completed a capital raising, signalling its recovery is under way.

In the four months to January 31 Tower’s gross written premium through digital channels more than doubled to $NZ5.9 million ($5.49 million).

Policy numbers grew by more than 5000 and this, along with improved pricing, pushed gross written premium for the New Zealand book up 14.3% compared with the previous corresponding period.

An unprecedented number of natural disasters hit New Zealand last year, but Tower’s non-catastrophe reinsurance program restricted the after-tax impact to $NZ7 million ($6.51 million).

New year storms on the North Island are expected to cost $NZ1.4-$NZ1.8 million ($1.3-$1.67 million) after tax. Storms last month resulting from Ex-Cyclone Fehi are estimated to cost $NZ2.2-$NZ3.2 million ($2.04-$2.98 million) after tax.

Tower expects the gross impact of Cyclone Gita to be $NZ5-$NZ8 million ($4.65-$7.45 million).

The insurer continues to make progress in Canterbury, with fewer than 300 open quake claims remaining.

It has agreed a settlement with Peak Re regarding an adverse development policy entered into in 2015, and will receive $NZ22 million ($20.52 million) of $NZ43.75 million ($40.82 million) claimed under the reinsurance contract, and all sums claimed in the arbitration proceeding.

The write-off of the residual amount will result in a $NZ15.2 million ($14.18 million) after-tax impact on profit.

Chairman Michael Stiassny says the agreement enables Tower to focus on the future.

Tower expects to hold about $NZ136 million ($126 million) in solvency capital, which is $NZ28 million ($26.13 million) above the regulator’s minimum requirements.