Tower successfully renews insurance programme for FY26

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Incorporated in New Zealand
24 September 2025
Tower successfully renews reinsurance programme for FY26
Kiwi insurer Tower (NZX/ASX: TWR) has successfully renewed its reinsurance programme for the
financial year ending 30 September 2026 (FY26), securing comprehensive cover at competitive
rates across its home, motor, boat, and commercial portfolios across New Zealand and Pacific
markets.
Tower estimates its reinsurance premium expense will represent 10.7% of Gross Written Premium in
FY26, down from 13.3% in FY25. The reduction in reinsurance premium expense will be partly offset
by lower reinsurance recoveries on property risks that were previously ceded to a proportional
treaty.
Tower CEO Paul Johnston says the renewed programme reflects Tower’s commitment to
maintaining strong financial resilience and flexibility to support sustainable growth.
“Tower’s risk-based pricing strategy and ability to dynamically adjust rates has once again enabled
us to secure favourable terms for FY26,” Johnston says. “We’ve deepened partnerships with global
reinsurers, with several committing to new multi-year agreements. These arrangements offer
greater certainty around future reinsurance costs and catastrophe excesses, supporting our
resilience.”
FY26 reinsurance programme highlights:
•Catastrophe upper limit increased to $915 million, up from $800 million in FY25.
•Continued cover for a third catastrophe event of up to $85 million.
•A structural change in protection for large individual property risks, from proportional to
excess of loss cover
1
, resulting in lower reinsurance premiums while maintaining protection
for large claims.
FY26 catastrophe reinsurance excess:
•$20m for the first two events (up from $18.75m in FY25, due to the expiry of multi-year
arrangements).
•$20m for a third event (unchanged from FY25)
“We’re pleased to have secured a comprehensive programme with stable excesses and lower
pricing,” says Johnston. “This supports our ability to maintain competitive pricing for customers
while protecting the business from volatility.”
ENDS
This announcement has been authorised by: Paul Johnston, Chief Executive Officer,
Tower Limited
For media enquiries, please contact:
Emily Davies,
Head of Corporate Affairs and Sustainability
+64 21 815 149
Emily.davies@tower.co.nz
For investor enquiries, please contact:
James Silcock,
Head of Strategy, Planning and Investor Relations
+64 22 395 9327
James.silcock@tower.co.nz
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Proportional reinsurance means the insurer and reinsurer share premiums and claims in agreed proportions. Excess of
loss reinsurance means Tower retains responsibility for claims up to a certain threshold, with the reinsurer covering losses
above that amount.