New Zealand-based insurer Tower has renewed its reinsurance programme for the financial year ending 30 September 2027, increasing its catastrophe upper limit to NZ$970 million from NZ$915 million in 2026.
The programme will provide comprehensive cover at competitive rates across Tower’s home, motor, boat, and commercial portfolios across New Zealand and Pacific markets.
Alongside the primary limit, Tower restructured its third catastrophe limit, increasing cover to $100 million, up from $85 million in FY26.
While previously secured as a prepaid annual limit, the FY27 layer was negotiated on pre-agreed terms, payable if two catastrophe events occur.
Under the renewed 2027 programme, catastrophe event excesses were set at $20 million, remaining the same as FY26.
As in previous years, the $970 million catastrophe limit includes a pre-paid reinstatement, providing cover for two large catastrophe events.
Tower estimates its reinsurance premium expense will represent 9.5% of Gross Written Premium in FY27, down from 10.6% in FY26.
According to Tower CEO Paul Johnston, the reduction reflects a combination of favourable global reinsurance market conditions, Tower’s strong business performance, and the FY25 and FY26 expansion of its risk-based pricing capability across additional perils.
“Our disciplined approach to risk selection, pricing and portfolio management has helped us secure a strong outcome for our FY27 reinsurance arrangements, supporting Tower’s ongoing resilience and ability to offer competitive pricing for customers,” he stated.
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