Kiwi insurer Tower (NZE:TWR, ASX:TWR) is on track to report an underlying profit of nearly NZ$60 million for the six months ended March 31, representing close to the bottom end of its fiscal 2025 guidance, Interest.co.nz reported Thursday, citing Forsyth Barr.
The upbeat forecast was driven by minimal large event costs and fewer business-as-usual claims amid a generally mild weather during the fiscal half-year period, said Forsyth Barr. Only an estimated NZ$3 million of the insurer's large events allowance had been used on the Dunedin floods in October 2024, according to analysts James Lindsay and Will Twiss.
Tower expects fiscal 2025 underlying after-tax net profit guidance to range from NZ$60 million to NZ$70 million based on its upgraded outlook in early February.
A "favorable" result is expected to lead to further capital returns or special dividends, Lindsay and Twiss said in the Forsyth Barr report, as quoted by Interest.co.nz.
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