Chch quake to hit Tower profit

Last updated 09:32 04/09/2012

Relevant offers

Industries

Health Ministry restructures as it prepares to revive flagship IT scheme Valley Girl, Temt now in receivership Shoppers descend on David Jones store in Wellington Opening day deals for shoppers at new David Jones store in Wellington ANZ Bank wins in Australian High Court bank fee case First look at David Jones department store in Wellington Valleygirl and Temt administrators search for supplier solutions Check out the world first 'un-meltable' ice cream Ryman Healthcare responds to staff pay gripes and increases directors fees Underwater glass lift proposed for Napier's National Aquarium

Insurance company Tower says its net profit for the year to September will take a $9 million hit due to the February 2011 Christchurch earthquake.

It told the stock exchange this morning that the impact of the Christchurch earthquakes continued to involve "elements of uncertainty" for the firm, and the board felt it was prudent to make conservative provisions.

Claims had not dented Tower's underlying financial strength, but net profit after tax for the current year would be reduced by $9.4m, equal to a one-off impact of 3.5 cents per share, it said.

Total claims and provisions would exceed Tower's reinsurance cover of $325m, but the company had since increased its reinsurance to $500m per event.

Group managing director Rob Flanagan said Tower remained well capitalised at approximately $475m of equity, well in excess of regulatory capital requirements.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content