Tower Limited Analysis

Overview

Tower operates as a prominent private general insurer in New Zealand and across five Pacific Island countries.

As New Zealand's largest direct-to-consumer insurer, Tower is unique in servicing the vast majority of its more than 300,000 customers via its direct channels. The insurer also has a rapidly growing partnership business, which secures mutually beneficial business partnerships that drive policy sales and growth.

Tower has a rich history that spans more than 150 years, starting as the Government Life Insurance Office in 1896. In 1987, it was renamed Tower Corporation, and in 1990 ownership was conferred to its policyholders. The company was one of the first mutual insurers to become a public company when it listed on the New Zealand and Australian stock exchanges in 1999.

In 2006, the New Zealand and Australian businesses were separated, and Tower has since sold its Australian business.

Today, Tower's focus is on providing simple and rewarding insurance services that customers value. This is achieved through strategies such as customer innovation and investment in large-scale digital transformation, which has enabled the business to evolve rapidly.

By joining forces with like-minded partners, Tower has created a leading range of simple products to suit the modern lifestyles of Kiwi and Pacific communities, including motor EVs, home contents, boat, travel, pet, rural and small business insurance.

Tower is actively managing volatility from climate change through its financial planning and reinsurance. The insurer is also managing its own environmental impacts. Tower was the first New Zealand general insurer to implement address-level risk-based pricing for large events such as earthquakes and flooding.

In 2020, Tower underwent an amalgamation to simplify its corporate structure in New Zealand. Today, Tower Limited remains listed on the NZX, and is listed in Australian as a foreign exempt entity under, in both countries under the ticker TWR.

Performance

The following information was extracted from Tower Limited's half year results, released 21 May 2026

Tower reports strong HY earnings

Kiwi and Pacific insurer Tower Limited (NZX/ASX: TWR) today announced a solid underlying profit performance for the half year ended 31 March 2026, delivering underlying net profit after tax (NPAT) of $36.8 million and a reported profit of $22.9 million. The Tower Board has declared a fully imputed interim dividend of 5c per share.

This positive HY26 result was delivered in a more challenging operating environment, marked by pricing pressure, elevated weather related claims activity and global volatility. Tower does not expect these economic conditions to improve in the second half.

HY26 key results:

• Underlying NPAT: $36.8m (HY25: $61.7m)

• Reported profit: $22.9m (HY25: $49.7m)

• Gross written premium (GWP): $301m, up 1%

• Customer numbers: 327,000, up 5% year-on-year

• BAU claims ratio: 44% (HY25: 38%)

• Management expense ratio (MER): 31% (HY25: 30%)

• Large event costs: $18.5m (HY25: $3m)

• Half year dividend: 5c per share