Tower Limited stock gets higher FY26 profit guidance

Published on 10/07/2026 at 02:18 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Tower Limited stock was trading at NZD 2.06 on October 7, 2026, after FY26 profit guidance rose to NZD 69 million to NZD 79 million. Customer numbers reached 345,000.

TWR, NZTWRE0011S2, Illustration mit AI erstellt.

Tower Limited (ISIN NZTWRE0011S2) was trading at NZD 2.06 on the NZX on October 7, 2026 at 12:56 p.m. NZDT, with a market capitalization of NZD 707.4 million. The insurer lifted its FY26 underlying net profit after tax guidance after large-event claims came in below the allowance.

Profit guidance moves higher

According to NZX on October 6, 2026, Tower now expects FY26 underlying NPAT of NZD 69 million to NZD 79 million for the year ended September 30, 2026. The previous range was NZD 55 million to NZD 65 million, lifting the midpoint from NZD 60 million to NZD 74 million, a 23.3 percent increase.

The guidance is based on preliminary, unaudited results. Tower had budgeted NZD 45 million for large-event claims, and the unused allowance added NZD 14 million after tax to expected underlying NPAT, while customer remediation costs will continue to affect reported profit.

Customers grow faster than premiums

RNZ reported on October 6, 2026 that customer numbers rose 8 percent to 345,000 during FY26. Gross written premium increased 3 percent, matching Tower guidance for low-single-digit growth.

That gap between customer and premium growth is the key operating detail behind the headline profit upgrade. It points to expanding policy volume alongside competitive pricing, rather than a broad premium-rate acceleration.

Claims and reinsurance shape FY27

Insurance Business reported on October 7, 2026 that Tower's reinsurance spend fell from 13.3 percent of gross written premium in FY25 to 10.7 percent in FY26. The same report said Tower described FY26 as a return to a more typical earnings profile after unusually favorable FY25 weather and claims conditions.

The distinction matters for investors because the higher FY26 guidance reflects both operating progress and claims experience. Future earnings will therefore depend on customer growth, pricing discipline, remediation costs and the level of catastrophe claims absorbed under the FY27 program.

Tower stock holds above NZD 2

Tower Limited stock was last at NZD 2.06 on the NZX on October 7, 2026 at 12:56 p.m. NZDT, with a 52-week range of NZD 1.74 to NZD 2.17. The October 7 quote sits NZD 0.11 below the 52-week high, while daily volume stood at 576,781 shares.