Tower shares hit by Kaikoura quake
Insurer still struggling with aftermath of 2011 event
Shares in insurance company Tower plunged 9% this morning after a magnitude 7.5 earthquake hit North Canterbury.
In early trading the stock was trading at 77c, down 8c on its opening price.
A Tower spokesman said the company was yet to assess the probable impact of the quake on its business.
“We’re working through it all at the moment,” he said.
In a statement posted to its website, the company advised people to stay safe, check their property and photograph any damage.
“Assess your property for safety. If it seems unsafe, please leave as quickly as possible, or do not go back inside. Attend to any immediate concerns before checking water and gas pipes and turning off at the main valve if safe to do so. Please be careful with broken glass, spilled liquids and electrical hazards.”
Customers can phone Tower on 0800 379 372 or email at claims@tower.co.nz.
Tower is due to announce its results for the year to September 30 on November 29.
On September 8 Tower said it was increasing its claims provisioning for the Canterbury earthquake in 2011 after a review by its actuary Deloitte. The increase is due to hit net profit by $16.2 million.
The company said it had $22.5 million of cash in excess of the minimum regulatory requirement and a further $50 million standby credit facility which could be used to support Tower Insurance if required.
At the time, Tower said it had 560 quake-related claims remaining from 16,000 lodged.
The company is in dispute with reinsurer Peak Re over Adverse Development Cover entered into in April 2015.
Tim Hunter
Mon, 14 Nov 2016
Mon, 14 Nov 2016
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