• Underlying NPAT of $107.2m, up from $83.5m in FY24
• Reported profit of $83.7m, up from $74.3m in FY24
• GWP up 2% to $600m, customer numbers up 4% to 318,000
• BAU claims ratio improved to 41%, down from 48% in FY24

Tower Limited (NZX/ASX: TWR) reported a record underlying profit performance for the year ended 30 September 2025, delivering an underlying NPAT of $107.2m and a reported profit of $83.7m. The result was driven by low large events costs and a significantly reduced business-as-usual (BAU) claims ratio, alongside customer growth. Reported profit reflects adjustments for increased Canterbury earthquake claims cost estimates, the ongoing cost of customer remediations and a provision for software impairment. Tower's customer base grew 4% to 318,000, with home insurance policies up 11%, reinforcing its strategic focus on the house portfolio. GWP growth of 2% reflects strong policy volumes, tempered by lower average premiums as Tower prioritised growth from low-risk customers and competitive pricing. The BAU claims ratio reduced substantially to 41.3%, driven by a continuation of relatively benign weather, lower inflation, reduced motor theft as well as underwriting improvements, process enhancements and prior year rating adjustments. Tower's investments in address-level risk-based pricing continue to reduce Tower's risk exposure, with 91% of new house policies rated low or very low flood risk, up from 87% in FY24. In FY25, Tower launched Amazon Connect, an AI-enabled contact centre platform that streamlines processes and reduces frontline effort, with key operational metrics already showing positive improvements.

In FY26 Tower expects underlying NPAT to be in the range of $55m to $65m, assuming full utilisation of an updated $45m large events allowance. GWP is anticipated to grow between 5% and 10%, supported by continued customer growth and strategic partnerships. While Tower expects to see benefits from digitisation and efficiency initiatives, ongoing investment in growth, technology and customer experience are expected to keep the MER between 31% and 32%.

Tower's strategy - centred on digital innovation, operational excellence, and a culture of customer centricity - continued to guide its journey to become the leading direct personal lines and SME insurer in New Zealand and its chosen Pacific markets. Key milestones this financial year included launching its AI-enabled contact centre platform, continued progress in its claims transformation programme, and achieving its highest-ever employee engagement score of 8.2.