Tower renews FY27 reinsurance programme with increased cover

Tower has completed the renewal of its reinsurance programme for the financial year ending 30 September 2027 (FY27). The insurer reported securing comprehensive cover at competitive rates, which is expected to support competitive pricing for its customers in New Zealand and Pacific markets.

Key updates to the programme include increasing the catastrophe upper limit to $970 million, up from $915 million in FY26. The third catastrophe limit has also been raised to $100 million from $85 million. Catastrophe event excesses remain unchanged at $20 million. The $970 million limit includes a pre-paid reinstatement designed to cover two large catastrophe events.

Tower estimates its reinsurance premium expense will be 9.5% of Gross Written Premium in FY27, a decrease from 10.6% in FY26. CEO Paul Johnston attributed this reduction to favorable global reinsurance market conditions, strong business performance, and expanded risk-based pricing capabilities. The company has also entered into new multi-year agreements with global reinsurers to provide greater cost certainty.