TWR - Tower Insurance

Started by kiwi2007, Nov 23, 2022, 11:27 AM

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LoungeLizard

Quote from: raW tent Buffer on Feb 05, 2025, 10:02 AMFirst guidance upgrade of 2025 just in... Could be looking well in excess of 100m NPAT at end of FY assuming no big disasters.

Very nice

Yep, and after the share buyback there will only be something like 340m shares - a lot of head room to pay a special dividend.

Greekwatchdog

They might have to visit a drop in premiums to their clients if they haven't looked at this already. Seems a bit on the nose when there is a significant hit they just increase premiums instead of asking shareholders for cash to cover...

Wonder Commerce Commission would think given insurance companies are creaming it, well Tower in the case are..

Food for Thought

BlackPeter

Quote from: Greekwatchdog on Feb 05, 2025, 12:59 PMThey might have to visit a drop in premiums to their clients if they haven't looked at this already. Seems a bit on the nose when there is a significant hit they just increase premiums instead of asking shareholders for cash to cover...

Wonder Commerce Commission would think given insurance companies are creaming it, well Tower in the case are..

Food for Thought

Absolutely - its a free market and Tower is typically overcharging clients and underdelivering in service. Just check where they typically end in insurance company comparisons. The result? Over the last 9 financial years they made in average meagre 2 cents per year per share.

So, sure - maybe they are lucky this year, but this will fix itself soon. Markets are forward looking, i.e. holders better dance very close to the exit and hope its big enough for the expected stampede.

Poet

Quote from: Greekwatchdog on Feb 05, 2025, 12:59 PMThey might have to visit a drop in premiums to their clients if they haven't looked at this already. Seems a bit on the nose when there is a significant hit they just increase premiums instead of asking shareholders for cash to cover...

Wonder Commerce Commission would think given insurance companies are creaming it, well Tower in the case are..

Food for Thought

Here's some food for thought

https://www.nzx.com/announcements/341787

and

https://www.nzx.com/announcements/354245

I guess there are good years and bad years. I don't resent them their good years.


Greekwatchdog

Quote from: Poet on Feb 05, 2025, 01:11 PMHere's some food for thought

https://www.nzx.com/announcements/341787

and

https://www.nzx.com/announcements/354245

I guess there are good years and bad years. I don't resent them their good years.



Fair enough, just from a customer perspective it becomes greedy if there is another Disaster that has a horrendous price tag who gets left with the bill for TWR to sort their financial position out.

lorraina

From today's update;
While Tower saw strong customer growth in the first three months of the financial year, a
reduction in average premiums has contributed to lower-than-expected GWP growth. Tower is
seeing a reduction in average premiums due to higher-than-expected proportions of lower risk new
house insurance and motor policies.

Makes very good sense to me.

Greekwatchdog

Quote from: lorraina on Feb 05, 2025, 01:34 PMFrom today's update;
While Tower saw strong customer growth in the first three months of the financial year, a
reduction in average premiums has contributed to lower-than-expected GWP growth. Tower is
seeing a reduction in average premiums due to higher-than-expected proportions of lower risk new
house insurance and motor policies.

Makes very good sense to me.

Will they reduce the premiums by as much as they increase them?

lorraina

#292
That could be possible,but unlikely to be probable.

LoungeLizard

I guess there's always going to be a glass half full /empty view of insurance companies. They are a necessary evil and we abhor them when they make super profits in the goods times then we moan as shareholders when the return is abysmal or non-existent in the bad. At the moment Tower and the insurance industry are on a roll - anyone who took a punt less than 12 months ago, has doubled their money. Bank the profits or stay in the game. No complaints either way.   

LoungeLizard

SP bumping over $1.40 finally, ahead of today's ASM. Q1 performance and upgrade, plus capital return should equate to a bit of SP action in the weeks ahead.