New Zealand-based insurance company Tower Limited has announced it has successfully placed additional reinsurance reinstatement cover for the remainder of the financial year ending 30 September 2023.
Tower recently indicated it would purchase additional catastrophe reinsurance to cover the increased estimate for the ultimate cost of February’s Auckland and Upper North Island Weather event.
Indeed, Tower has increased its estimate for the ultimate cost for this event to a range of between $195m to $225m.
The insurer previously said that its reinsurance recovery could have been between $83.125 million and $113.125m, based on a loss estimate of $95 million to $125m.
As these figures have been updated, this means that at the upper end, roughly $213m could be recovered from its excess-of-loss reinsurance partners for that event.
According to the firm, this action aligns with its comprehensive approach to reinsurance.
Before this reinstatement announcement, Tower had protection for a potential third catastrophe event up to $889m in the financial year.
This additional purchase of $100m of cover reinstates protection for a fourth catastrophe event up to $889m in the financial year.
Tower suggests it has sufficient reinstatement cover for Cyclone Gabrielle claims, and will provide further details on its reinsurance programme at its half-year results presentation on 25 May 2023.
