Key points
- Catastrophe upper limit increased to $970M
- Third catastrophe limit increased to $100M
- Reinsurance premium expense expected to decrease
Full summary
Tower Ltd, a Kiwi insurer, has successfully renewed its reinsurance programme for the financial year ending 30 September 2027 (FY27), securing comprehensive cover at competitive rates across its home, motor, boat, and commercial portfolios in New Zealand and Pacific markets. Key details include an increased catastrophe upper limit to $970 million, an improved third catastrophe limit of $100 million, and unchanged catastrophe event excesses of $20 million. Tower estimates its reinsurance premium expense will represent 9.5% of Gross Written Premium in FY27, down from 10.6% in FY26.
Guidance
Reinsurance premium expense expected to be 9.5% of Gross Written Premium in FY27
Outlook
Tower's disciplined approach to risk selection, pricing, and portfolio management has helped secure a strong outcome for FY27 reinsurance arrangements.