• Reinsurance premium expense to be 10.7% of Gross Written Premium in FY26, down from 13.3% in FY25
• Catastrophe upper limit increased to $915 million, up from $800 million in FY25
• Continued cover for a third catastrophe event of up to $85 million

Tower (NZX/ASX: TWR) has successfully renewed its reinsurance programme for the financial year ending 30 September 2026 (FY26), securing comprehensive cover at competitive rates across its home, motor, boat, and commercial portfolios across New Zealand and Pacific markets. Tower estimates its reinsurance premium expense will represent 10.7% of Gross Written Premium in FY26, down from 13.3% in FY25. The reduction in reinsurance premium expense will be partly offset by lower reinsurance recoveries on property risks that were previously ceded to a proportional treaty. Tower CEO Paul Johnston says the renewed programme reflects Tower's commitment to maintaining strong financial resilience and flexibility to support sustainable growth. The FY26 reinsurance programme highlights include an increase in the catastrophe upper limit to $915 million, up from $800 million in FY25, and continued cover for a third catastrophe event of up to $85 million. Additionally, there has been a structural change in protection for large individual property risks, from proportional to excess of loss cover, resulting in lower reinsurance premiums while maintaining protection for large claims.