Tower raises FY25 earnings guidance on strong performance

Tower (NZX:TWR) announced today an updated FY25 earnings guidance, raising its underlying NPAT forecast to between NZD 70 million and NZD 80 million, up from the previous range of NZD 60 million to NZD 70 million. The revision reflects favorable weather conditions, a lower inflationary environment, and enhanced risk selection leading to fewer total loss house claims. Gross written premiums (GWP) guidance is revised to mid-single digit. The management expense ratio (MER) is revised to <31%. Reported profit will be impacted by additional non-underlying costs, including ongoing customer remediation costs and an increase in the Canterbury earthquake provision. Tower anticipates providing further details at its half-year results announcement on May 20, 2025.