Highlights

  • Tower Limited (ASX:TWR) lifted its preliminary FY26 underlying profit guidance to NZD 69 million–79 million.
  • Customer numbers increased 8% to approximately 345,000 during FY26, while gross written premium rose 3%.
  • The FY26 interim dividend was NZD 0.05 per share, with payment completed in June 2026.
  • Tower renewed FY27 catastrophe cover with a NZD 970 million upper limit and scheduled FY26 results for November.

Tower Limited (ASX:TWR) provides general insurance across New Zealand and Pacific markets, including cover for homes, vehicles and other personal and commercial assets. Its dividend information includes an AUD 1.66 reference figure with 0% franking; the company paid a fully imputed New Zealand interim dividend of NZD 0.05 per share in June 2026. In October, Tower raised its preliminary FY26 earnings guidance following lower-than-budgeted large-event claims, bringing its insurance results and upcoming full-year reporting into focus.

Company Business

Tower Limited (ASX:TWR) operates as a general insurer, offering home, contents, motor, boat and commercial insurance. New Zealand is its principal market, alongside operations in Pacific territories. The business distributes policies directly and through arrangements with partners. Premium income, the frequency and cost of claims, operating expenses and reinsurance costs are central to its financial results.

Recent Development

In early October 2026, Tower Limited (ASX:TWR) revised expected FY26 underlying net profit after tax to NZD 69 million–79 million from NZD 55 million–65 million. These are preliminary, unaudited figures for the year ended 30 September 2026, not final audited earnings. The company attributed the NZD 14 million upward adjustment to the unused portion of its allowance for major weather-related events.

Large-event claims totalled approximately NZD 25 million against a NZD 45 million allowance, leaving around NZD 20 million unused. Tower indicated that the after-tax effect contributed NZD 14 million to expected underlying earnings. It also reported customer numbers of about 345,000, an 8% annual increase, with gross written premium growth of 3%. Reported statutory profit will also reflect non-underlying items, including customer remediation expenditure.

In September, Tower renewed its FY27 reinsurance arrangements. The catastrophe upper limit increased to NZD 970 million from NZD 915 million for FY26, while the excess applying to catastrophe events remained NZD 20 million. Third-event cover increased to NZD 100 million from NZD 85 million. Tower expects FY27 reinsurance premiums to equal around 9.5% of gross written premium, versus 10.6% in FY26.

Financial Performance and Sector Context

For the half-year ended 31 March 2026, Tower Limited (ASX:TWR) reported underlying net profit after tax of NZD 36.8 million, compared with NZD 61.7 million in the corresponding period. Reported profit declined to NZD 22.9 million from NZD 49.7 million. Half-year gross written premium was NZD 301 million, an increase of 1%, while the customer base reached approximately 327,000.

The business-as-usual claims ratio rose to 44% from 38%, the management expense ratio reached 31%, and large-event costs increased to NZD 18.5 million from NZD 3 million. Claims experience, competitive pricing and repair costs remain significant insurance-sector variables.

Tower paid its 2026 interim dividend of NZD 0.05 per share on 25 June. The distribution was fully imputed for New Zealand tax purposes. Future distributions depend on board decisions, earnings, capital requirements and regulatory solvency considerations; the interim payment does not establish the level of any subsequent dividend.

Risks to Consider

Tower Limited (ASX:TWR) faces storm and flood exposure, reinsurance deductibles and repair-cost inflation. Pricing competition can constrain premiums, while customer remediation costs can affect reported profit.

What to Watch Next

Tower Limited (ASX:TWR) has scheduled FY26 results for 26 November 2026. Key disclosures will include profit, claims, capital and any final-dividend decision. The FY27 reinsurance programme and customer growth are further monitoring points.

Key Insights

Tower entered its November reporting period with higher preliminary FY26 underlying earnings guidance, growing policyholder numbers and renewed catastrophe protection. Its dividend record includes a June 2026 interim distribution, while the forthcoming annual results will clarify reported earnings, capital positions and subsequent distribution decisions. Claims experience and the cost of insurance cover remain central to assessing operating performance.