Tower Insurance renews reinsurance program, lowers premium expense estimate
What happened
Tower Insurance renewed its reinsurance program for the 2027 financial year, increasing its catastrophe cover upper limit to $970 million. The company estimates its reinsurance premium expense will be 9.5% of Gross Written Premium in 2027, which is a reduction from 10.6% in the prior year. Paul Johnston, CEO of Tower Insurance, attributed the lower expense to favorable global reinsurance market conditions and strong business performance.
From interest.co.nz
Why it matters
The renewed program covers Tower Insurance's home, motor, boat, and commercial portfolios across New Zealand and Pacific markets. The reduction in reinsurance premium expense suggests improved risk management or favorable market conditions for the general insurer.
From interest.co.nz
Who's involved
- Tower InsuranceThe general insurer that renewed its reinsurance program and set the catastrophe limit
- Paul JohnstonCEO of Tower Insurance who commented on the reduction in premium expense
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Tower InsuranceSpeculative
Policyholders in the Pacific markets might see competitive pricing from Tower Insurance due to the lower reinsurance premium expense
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The entities involved
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Tower Insurance
New Zealand insurance company
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Pacific
city in Washington, United States of America
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Paul Johnston
researcher (ORCID 0000-0001-5815-3091)
Nothing else this week.