Highlights

  • The indicated annual Yield is 10.63%, with the Interim Dividend denominated in NZD.
  • Tower raised its preliminary FY26 Underlying Profit range to NZD69 million–NZD79 million.
  • Lower use of its large event allowance supported the forecast uplift.

Tower (ASX:TWR) provides general insurance, with New Zealand home insurance and distribution partnerships contributing to customer growth. Its indicated annual yield is 10.63%, and the listed interim dividend was NZD0.058 per share. The October 2026 Earnings update provides context for that income profile, although preliminary underlying profit guidance is different from a confirmed statutory result.

The cash payment is denominated in New Zealand dollars

Tower (ASX:TWR) had an ex-dividend date of 10 June 2026 and Record Date of 11 June for the interim payment. The payment date was 25 June 2026, which has passed. The amount is NZD0.058 per share, not an Australian dollar dividend.

The dividend is listed with 0% Australian franking. That field should not be interpreted as a statement about every aspect of New Zealand taxation or imputation. The currency received by an individual holder can also depend on the applicable payment arrangements and exchange conversion.

The 10.63% annual yield cannot be derived by simply treating this interim payment as a full year commitment. A yield is affected by the share price and the dividends counted in its calculation. Future payments remain dependent on earnings, Capital requirements and board decisions.

A smaller claims bill raises expected underlying earnings

Tower (ASX:TWR) revised its FY26 underlying net profit after tax guidance on 6 October 2026. Based on preliminary unaudited results for the year ended 30 September, it expected NZD69 million–NZD79 million, compared with the earlier NZD55 million–NZD65 million range.

The change mainly reflected the large event allowance. Tower had budgeted NZD45 million, but recorded large event claim costs of approximately NZD25 million. The unused allowance of about NZD20 million increased expected underlying profit by NZD14 million after tax.

This explains why the guidance upgrade should be read with the claims environment in mind. Weather related losses can vary considerably between years, so a favourable allowance outcome does not establish a repeatable annual increase in Underwriting earnings.

Customer growth and remediation shape the next assessment

Tower (ASX:TWR) reported customer numbers up 8% to 345,000 over FY26, driven primarily by New Zealand home insurance and partnerships. Gross Written Premium increased 3%, in line with low single digit growth guidance. Customer growth therefore outpaced premium growth during the period.

The company described competitive pricing as supporting affordability and customer acquisition, while broader risk based pricing aimed to improve portfolio quality. The balance between policy growth, pricing and claims costs remains central to insurance profitability.

Reported profit will also include non-underlying costs, including further customer remediation programme expenses incurred in the second half. Tower scheduled its detailed FY26 results for 26 November 2026. Until then, the revised range remains preliminary rather than the final reported profit figure.

Key Insights

Tower (ASX:TWR) combines a double digit indicated yield with an improved preliminary earnings range. The upgrade largely reflects lower event claims, while remediation affects reported profit. Its NZD payment currency and Australian franking status also matter when interpreting the income amount.