TWR - Tower Insurance

[Basil]

Now ask Copilot how much insurance premiums have increased since the early 1900's.

Insurance is merely a process of averaging risk with others, and as risk rises so do premiums.

[LoungeLizard]

I don't think there's any debate that climate change is already here. It seems counter-intuitive to me to say that insurance companies are a good investment against a backdrop of incresingly frequent and violent weather systems. Not to mention the increasing chances of another fault line breaking (the Alpine fault line is overdue).
Tower have been below average dividend payers for the last twenty years and I reckon this golden period isn't about to last. Probably worth a punt at below $2 but I wouldn't put my house on them

[Basil]

No argument from me that climate change risks are increasing but the facts according to Tower are they have used an average of $15m per annum of their extreme event provision over the last 10 years and they are providing $45 per annum at present.  On the law of averages they are over provisioning by $30m per annum.

Additionally premiums have risen quite a lot in the last 5 years and they have also considerably de-risked their business over that timeframe.

Insurance companies are not everyone's cup of tea, I  understand that. Each to their own.
I posted about the extremely attractive prospective gross yield a while back. That's why I'm holding.

[HAWKDOG]

Don'

Now ask Copilot how much insurance premiums have increased since the early 1900's.

Insurance is merely a process of averaging risk with others, and as risk rises so do premiums.

No need to ask copilot I have several years of insurance premium increases from Tower to refer to.
 
Tower has done a great job of de risking their business no argument there. 
 
I wonder if they have lost much in the way of business on top of high risk property - will people move their car and boat insurance to an insurer that will insure their house - if they have a house deemed uninsurable by Tower.

[Greekwatchdog]

I don't think there's any debate that climate change is already here. It seems counter-intuitive to me to say that insurance companies are a good investment against a backdrop of incresingly frequent and violent weather systems. Not to mention the increasing chances of another fault line breaking (the Alpine fault line is overdue).
Tower have been below average dividend payers for the last twenty years and I reckon this golden period isn't about to last. Probably worth a punt at below $2 but I wouldn't put my house on them

When the Alpine fault goes off, and its well over due, New Zealand will be in the poop so Tower like all insurance companies will be up for a lot of dollars. Then councils and Govts alike are great at insuring assets at below replacement value (Look at Chch council ex Chch earthquake)

Problem is picking it, so I guess holders take the money for now in the hope we don't have a Alpine fault like disaster.