Tower estimate for Cyclone Winston potential loss in Fiji $4M to $7M

Tower says the after-tax cost of the potential loss is estimated at $4 million to $7 million.

Tower [NZX: TWR], the New Zealand general insurer, has updated its estimated potential net loss in Fiji from damage caused by Cyclone Winston.

Tower says the after-tax cost of the potential loss is estimated at $4 million to $7 million, less than the $10 million excess under the insurer's main catastrophe reinsurance programme. To date, Tower has received fewer than 250 claims for cyclone damage, it said.

"The worst damage has been sustained on the North coast of Viti Levu and other outer islands," said chief executive Richard Harding. "Although it is early days, it appears that Tower will be subject to losses lower than initially anticipated given the severity of the cyclone."

The company would refine its claim cost estimates as assessments progress and as Fiji-based staff continue to directly assist customers in the affected areas, it said in a statement. Last month Tower estimated its maximum exposure at $7.2 million.

Tower shares rose 0.6 percent to $1.60 and have fallen 16 percent this year.

(BusinessDesk)