Tower completes FY25 reinsurance renewal, lifts catastrophe upper limit by NZ$50m

Kiwi insurer Tower has renewed its reinsurance coverage for the 2025 financial year, increasing its catastrophe upper limit to NZ$800 million with a higher attachment point than last year.

Tower says that it has secured comprehensive cover at competitive rates for its home, motor, boat and commercial portfolios across New Zealand and Pacific markets.

In order to support growth and align with its prudent risk appetite, Tower increased the catastrophe upper limit by NZ$50 million year-on-year, and also expanded cover for a third catastrophe event to NZ$85 million compared with NZ$75 million in FY24.

As well as expanding the upper limit of its reinsurance programme, for FY25, the attachment point has risen from NZ$16.9 million to NZ$18.75 million for the first two events, while the third event attachment remains unchanged at NZ$20 million.

Tower estimates it will pay 11.7% of total income for reinsurance cover in FY25, down from 13.9% in FY24.

Tower CFO, Paul Johnston, commented, “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.

“We’re pleased to have secured a comprehensive reinsurance programme with stable excesses and pricing. This will help Tower maintain competitive pricing for customers.”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.