Tower (ASX: TWR), a New Zealand-based general insurer, provides a range of insurance products including home, contents, motor, and business insurance across New Zealand and the Pacific. The company today announced an upward revision to its underlying net profit after tax (underlying NPAT) guidance for the financial year ending 30 September 2026.
Based on preliminary, unaudited results, Tower now anticipates its FY26 full-year underlying NPAT to be between $69 million and $79 million. This marks a significant increase from its previous guidance range of $55 million to $65 million. The uplift is primarily attributed to the company’s large event allowance of $45 million not being fully utilised during the year. Actual large event claim costs for the financial year were approximately $25 million, leaving an unused allowance of around $20 million, which translates to an increase of $14 million in expected underlying NPAT after tax.
The expected FY26 result signifies a return to a more typical earnings profile for Tower, following an exceptionally strong FY25 characterised by unusually favourable weather conditions and claims experience. Customer growth remained robust, with customer numbers climbing 8% during the year to reach 345,000. This expansion was largely driven by growth in New Zealand home insurance policies and strategic partnerships. Gross written premium (GWP) growth stood at 3%, aligning with the company’s guidance for low single-digit growth. Tower will release the full details of its FY26 financial performance on 26 November.
