Highlights

  • Tower Limited (ASX:TWR) raised FY26 underlying NPAT guidance to NZD 69mn–79mn.
  • Large-event claims were approximately NZD 25mn against a NZD 45mn allowance.
  • Customer numbers increased 8% to around 345,000.

Tower Limited (ASX:TWR) is a New Zealand-based general insurer offering personal insurance products and operating through direct and Partnership distribution. In an ASX/NZX release dated 6 October 2026, the group raised its FY26 Underlying Profit guidance based on preliminary unaudited information.

Revised Underlying Profit Outlook

Tower Limited (ASX:TWR) now expects FY26 underlying NPAT in the range of NZD 69mn to NZD 79mn for the year ended 30 September 2026. Its previous guidance was NZD 55mn to NZD 65mn. The company attributed the increase mainly to a lower use of its planned large-event claims allowance rather than to a change in its ordinary premium-growth assumptions. These numbers remain preliminary until full results are published.

Large-Event Claims and the Allowance

The group had budgeted NZD 45mn for large-event claims during FY26, but recorded approximately NZD 25mn of such claims. The unused allowance of roughly NZD 20mn was expected to add around NZD 14mn to underlying NPAT after tax. The profit uplift should be distinguished from total reported insurance Earnings and any other claim or remediation expenses recorded during the year.

Customers and Gross Written Premium

Customer numbers rose 8% over the year to approximately 345,000. The company cited growth in New Zealand home policies as well as distribution partnerships. Gross Written Premium increased by about 3%, consistent with its guidance for low-single-digit growth. Its announcement discussed competitive pricing and broader risk-based pricing as Business priorities; it did not quantify every component of premium-rate or policy-count changes.

Reported Profit Versus Underlying Results

The release specified that reported profit would continue to be affected by non-underlying items, including customer remediation programme costs in the second half. Accordingly, guidance for underlying NPAT should not be presented as statutory profit guidance. The company noted that FY25 had experienced unusually favourable weather and claims experience, making direct year-to-year comparisons sensitive to loss events.

Business Model and Risk Factors

Tower Limited (ASX:TWR) earns insurance premium Revenue while assuming the costs associated with policyholder claims and operations. Weather events, Reinsurance pricing, premium affordability, regulation and remediation commitments are relevant variables. Actual large-event claims can change materially from the allowance used for business planning. Subsequent reporting can clarify the bridge between underlying and statutory performance.

Key Takeaways

The company revised its earnings range after lower-than-allowed large-event claims, while also reporting policyholder growth and modest premium expansion. The final FY26 results were scheduled for 26 November 2026 in the release and will establish the audited outcome.