Tower successfully renews reinsurance programme for FY25

Tower Limited (ASX:TWR) has successfully renewed its reinsurance programme for FY25, securing comprehensive cover at competitive rates for its home, motor, boat, and commercial portfolios across New Zealand and its Pacific markets. Tower CFO Paul Johnston highlighted that the reinsurance arrangements aim to provide financial protection from large events volatility and maintain financial flexibility to support growth while underpinning strong solvency.

Tower CFO Paul Johnston on FY25 reinsurance programme

Tower's focus on risk-based pricing combined with our dynamic rating ability helped us secure favourable terms for our FY25 reinsurance. We've further strengthened relationships with global reinsurers, with several agreeing to new multi-year arrangements, which provides greater long-term certainty of reinsurance costs and catastrophe excesses.

Tower's FY25 reinsurance programme and outlook

Tower has successfully renewed its reinsurance programme for FY25, securing comprehensive cover at competitive rates for its portfolios. The company has increased its catastrophe upper limit to $800m and expanded cover for a third catastrophe event to $85m. With stable excesses and pricing, Tower estimates it will pay 11.7% of total income for reinsurance cover in FY25, down from 13.9% in FY24. Tower aims to maintain competitive pricing for customers and support growth while underpinning strong solvency.