Chch quake to hit Tower profit

Last updated 09:32 04/09/2012

Relevant offers

Industries

Online 'directory' scamming small businesses, Commerce Commission warns Origin Energy's sale of 53pc stake good for Contact: analyst QV figures show house values rising at fastest rate since 2007 West Coast awaits decision on Solid Energy's future Rapidly growing tech firm VMob delays plan to list on Australian stock market Gargantuan slump in world commodity prices in July: ANZ TPP deal failed because it was about protectionism, not trade Insurer Suncorp's NZ profit jumps 64pc, Christchurch claims unsettled Home repair risk in Canterbury, building industry warns Kiwi confidence trumps Aussie gloom: Mastercard survey

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