TWR - Tower Insurance

[Dolcile]

I've just seen an interesting post on the New Zealand subreddit...

Tower Insurance Redundancy

Just been advised today that my employer is proposing to make my role redundant. The are downsizing and the people in the firing line are those who work from home. There is no process for it to be performance based at all...

I'm taking this as a sign that the investment in IT / AI is paying off and Tower is further optimising its cost structure.

[Basil]

Interesting interview with Tower's CEO reported in the herald on Tuesday this week, sorry its paywalled
https://www.nzherald.co.nz/business/companies/summer-questions-tower-ceo-paul-johnston-on-keeping-insurance-affordable-and-sustainable-as-the-company-celebrates-a-stellar-year-on-the-nzx/premium/FMQZEWUTQFDH3MZRBLDDWPTT5M/
Excerpts:-

How are you using AI to change your business?
One of the most exciting opportunities for us is the potential for AI to improve access and equity in insurance. Used well, AI could help simplify insurance, make information clearer, and remove barriers for people who might otherwise struggle with complex processes. It could help us respond faster after severe weather events, support vulnerable customers more proactively, and provide services in ways that meet people where they are.

We're still in the early stages, progressing carefully but with good momentum. We've already piloted AI in part of our claims process to make it faster and more transparent for customers. And we were proud to be one of just seven organisations globally selected for an Amazon Web Services pilot, based on our work launching an AI‑enabled contact centre using Amazon Connect

What would you rate as your greatest success?
Being part of leading Tower through this stage of its transformation into a customer-centric, digital-first insurer has been a proud moment, but it's absolutely a team achievement, not mine alone.

.

[SCOTTY]

Thanks for sharing this Basil. Tower is certainly in good hands with Paul Johnston as the CEO 🥳

[Left Field]

Tower Insurance Redundancy

Just been advised today that my employer is proposing to make my role redundant. The are downsizing and the people in the firing line are those who work from home. There is no process for it to be performance based at all...

I'm taking this as a sign that the investment in IT / AI is paying off and Tower is further optimising its cost structure.

More details in this article behind a paywall.  46 staff made redundant. Rotorua office closing as a result of AI savings/efficiencies..

https://businessdesk.co.nz/article/markets/tower-to-cut-46-roles-end-rotorua-office-lease

[Dolcile]

And moving more roles to Fiji I understand

[Dolcile]

2.10 by the end of the day? Quite possibly

[Basil]

Very interesting to see significant new cost efficiencies at this very early stage of their A.I. development program.

Dolcile.  Sure has enjoyed a good run.  Its like a good bottle of wine.  Take the cork out and let it breathe for a while.  It'll get back to $2.10 in due course., probably not today but you never know lol

[Sideshow Bob]

2.10 by the end of the day? Quite possibly

Impressive recovery after going ex-div!!

I look forward to the juicy dividend hitting my bank account soon!!

[Dolcile]

Sharesies also showing a gross yield and PE of 17% and 8.5x, respectively. 

[Otago K]

Sharesies also showing a gross yield and PE of 17% and 8.5x, respectively. 

From the ex dates of 11/6/25 and the recent 14/1/26; the dividends plus attached imp crs do come to essentially 34c which on $2.00 share price sits at the 17% gross yield. Looks close enough for me.
https://www.nzx.com/instruments/TWR/dividends

I'm satisfied the prior ex dividend 15/1/25 of 6.5c without any imp crs isn't being caught. All perhaps any observing novice investors need watch out for here is that it is something of a potential good ducks in a row year for the company, there is some risk to remain mindful of as always. That said there is plenty of commentary suggests it's not that far from what may be the future norm for this stock to hit such like payout levels.

Agreed at the moment I am reading it as a good income yield driven stock, discl hold sufficient weight here for my criteria.

[Left Field]

From the ex dates of 11/6/25 and the recent 14/1/26; the dividends plus attached imp crs do come to essentially 34c which on $2.00 share price sits at the 17% gross yield. Looks close enough for me.
https://www.nzx.com/instruments/TWR/dividends

For longer term holders, even nicer returns if your average holding SP cost is well below the current SP   

[winner (n)]

Floods in Northland worse than Gabrielle the paper says

Just as well Tower don't have to many customers up north

[777]

Just as well Tower don't have too many customers up north

How would you know that?

[Basil]

Tower has been getting out of flood prone high risk area's.

[mike2023]

If there was a large claim situation for Tower, how soon would they let the market know?