Tower sees profitability return in H1 2019

Tower Insurance has announced it returned to profitability for the half year to March 31, generating $11.9 million of after-tax profit.

According to Tower, the reported half-year profit demonstrates a turnaround of $23.5 million from the same period last year. Other highlights for the firm include a $19.4 million after-tax underlying profit and an 8.9% increase in gross written premium, with 9,383 risks added to its core NZ portfolio. Improved pricing, underwriting and benign weather helped the insurer reduce claims costs to 44.5%, down by 11 points year-on-year, the insurer said.

Read more: 70% of people think Tower’s risk-based pricing is fair, survey finds

Additionally, Tower revised its underlying NPAT guidance for FY19 from $22 million to $26 million.

“We’re on a mission to challenge the traditions and norms of a stale insurance industry and I’m pleased that it’s resonating with customers and our business is growing,” Tower chief executive Richard Harding said. “Our drive to become a digital insurer and our fairer approach to pricing has seen online sales increase significantly.”

Tower noted a full replacement of its core platform with world-leading technology.

“After a number of years removing legacy issues and creating a solid platform for growth, we’re now well placed to take on the large, overseas-owned insurers,” Harding added.