Key highlights

  • Tower Limited (ASX:TWR) shares were priced at $1.660 during the trading session on 22 October 2026, down 0.598% (down $0.009), and it carries an annual dividend yield of 10.85%.
  • The latest dividend was an interim dividend of NZ$0.058 per share with an ex-date of 10 June 2026 and a payment date of 25 June 2026, franked at 0%.
  • On 6 October 2026 it raised its FY26 underlying NPAT guidance to NZ$69 million to NZ$79 million from NZ$55 million to NZ$65 million.

Tower Limited (ASX:TWR) shares were priced at $1.660 during the trading session on 22 October 2026, down 0.598% (down $0.009). The stock carries an annual dividend yield of 10.85%, and its latest dividend is NZ$0.058 per share. Tower is a New Zealand general insurer listed on the NZX and ASX. On 6 October 2026 it raised its FY26 underlying NPAT guidance to NZ$69 million to NZ$79 million from NZ$55 million to NZ$65 million.

Trading snapshot

During the session on 22 October 2026, TWR traded at $1.660, down 0.598% (down $0.009), against a previous close of $1.670. The day range was $1.660 to $1.675, the bid-offer range was $1.665 to $1.690, and 10,385 shares had changed hands, compared with an average daily volume of 14,650. Market capitalisation is $573.49 million, and there are 343,411,351 shares on issue. The company listed on 28 September 1999.

Fundamentals include a P/E ratio of 12.61, EPS of $0.164, revenue of NZ$534.47 million, net profit of NZ$83.67 million, enterprise value of NZ$638.53 million, total assets of NZ$612.93 million and total liabilities of NZ$262.26 million.

About Tower Limited: business overview

Tower Limited is a New Zealand insurer of home, motor, boat and commercial risks across New Zealand and Pacific markets, with a customer base of 345,000 following 8% growth in the year. It is incorporated in New Zealand and listed on the NZX and ASX, and its financial year ends on 30 September.

FY26 guidance update (6 October 2026)

Tower said its FY26 underlying NPAT is now expected to be between $69 million and $79 million, compared with previous guidance of $55 million to $65 million, based on preliminary, unaudited results. The uplift reflects its large event allowance of $45 million not being fully used during the year: large event claim costs were about $25 million, and the unused allowance of about $20 million increased expected underlying NPAT by $14 million after tax.

The company said the expected FY26 result reflects a return to a more typical earnings profile after unusually favourable weather and claims experience in FY25, and that reported profit will continue to be affected by non-underlying costs including customer remediation programme costs in the second half. Customer numbers rose 8% to 345,000, and gross written premium rose 3%, in line with guidance. Full FY26 results will be released on 26 November.

FY27 reinsurance renewal (21 September 2026)

Tower renewed its FY27 reinsurance programme, increasing its catastrophe upper limit to $970 million from $915 million, lifting its third catastrophe limit to $100 million from $85 million and keeping catastrophe event excesses at $20 million. It estimates reinsurance premium expense will represent 9.5% of gross written premium in FY27, down from 10.6% in FY26.

The latest dividend is an interim dividend of NZ$0.058 per share, unfranked, with an ex-date of 10 June 2026 and a payment date of 25 June 2026.

The dividend and the yield figure

TWR carries an annual dividend yield of 10.85%. The latest dividend is described as an interim dividend of NZ$0.058 per share, with an ex-date of 10 June 2026, a record date of 11 June 2026 and a payment date of 25 June 2026. Franking is 0%.

The latest dividend is stated in a currency other than Australian dollars, so it cannot be compared directly with the share price without a conversion, and the annual yield is quoted as an annual measure. Annual yield figures are not forecasts and are not a recommendation.

Related sector context

Lenders mortgage insurers and general insurers earn from premiums and investment income and are influenced by claims experience, reinsurance costs, regulatory capital and interest rates. Capital positions relative to regulatory requirements are reported as a multiple of the prescribed capital amount, and companies with surplus capital may return it through special dividends or buy-backs.

Risks to weigh in

General insurers are exposed to the frequency and cost of weather and catastrophe events, and Tower’s guidance depends on claims experience in the final weeks of the year. Reinsurance costs and limits affect results, and the company said remediation costs will continue to affect reported profit. The latest dividend is unfranked, and the annual yield figure rests on dividends over the past year rather than a forecast.

Catalysts on watch

Tower’s full-year FY26 results on 26 November 2026 and any final dividend.

Progress against underlying NPAT guidance of NZ$69–79 million.

Weather and catastrophe experience through the summer.

Wrapping up

Tower carries a 10.85% annual yield and an upgraded FY26 underlying profit range, supported by lower-than-allowed large event costs. The full-year result on 26 November will show the final profit and any final dividend.