Key Highlights

  • Tower Limited (ASX:TWR) declared a 5.0 NZ cents per share Interim Dividend for HY26, payable on 25 June 2026.
  • Underlying NPAT declined to NZ$36.8 million from NZ$61.7 million, while reported profit fell to NZ$22.9 million from NZ$49.7 million.
  • Gross Written Premium increased 1% to NZ$301 million and customer numbers rose 5% to 327,000.
  • Higher claims activity lifted the business-as-usual claims ratio to 44% from 38%, while large-event costs increased to NZ$18.5 million from NZ$3 million.

Tower Limited (ASX:TWR), the New Zealand and Pacific-focused insurer listed on both the NZX and ASX, remains a dividend-focused stock following its latest interim distribution. On 21 May 2026, the company declared a 5.0 NZ cents per share interim dividend, with the ex-dividend date set for 10 June, Record Date on 11 June and payment on 25 June. Tower's official dividend history confirms the 2026 interim payment at 5.0 cents per share.

The annual Yield sits at 11.84% as of 18 August with a dividend amount of NZ$0.05.

Earnings Decline Changes the Dividend Context

The attraction of the dividend needs to be viewed alongside the movement in earnings. For the six months ended 31 March 2026, Tower reported underlying NPAT of NZ$36.8 million, down from NZ$61.7 million in the corresponding period. Reported profit declined to NZ$22.9 million from NZ$49.7 million.

The decline occurred despite continued expansion in the customer base. Gross written premium rose 1% to NZ$301 million, while customer numbers increased 5% year-on-year to 327,000. The Earnings reduction therefore came primarily through higher claims and operating pressures rather than a contraction in customer numbers or premium income.

Claims Costs Put Pressure on Profitability

Tower's HY26 claims metrics provide important context for dividend-focused investors. The business-as-usual claims ratio increased to 44% from 38% in HY25, while the management expense ratio rose to 31% from 30%. Large-event costs were NZ$18.5 million, compared with only NZ$3 million in the prior corresponding period.

These movements reduced the amount of earnings available to support Shareholder distributions during the period. Tower also indicated that pricing pressure, elevated weather-related claims and global Volatility were affecting the operating environment. The company's half-year announcement noted that it did not expect these conditions to improve during the second half.

Capital Position Remains Relevant

Dividend capacity for an insurer also depends on Capital and Solvency requirements. Tower reported an adjusted group Solvency Ratio of 155% as at 31 March 2026, with NZ$320.8 million of solvency capital against an adjusted prescribed capital requirement of NZ$206.6 million.

This provides context for the interim distribution, although the lower HY26 earnings underline that dividend payments cannot be assessed independently from claims experience, capital requirements and future profitability.

Conclusion

Tower Limited's dividend remains a central feature of the ASX:TWR Investment story, but the latest figures show a more mixed earnings picture. The company continued to increase customers and premiums, while underlying NPAT and reported profit both declined materially because of higher claims costs, elevated large-event expenses and increased operating costs. The 5.0-cent interim dividend was paid on 25 June 2026, while the yield figure can vary depending on the share price and the annual dividend assumption used.