Tower puts maximum bill for Winston in Fiji at $7.2m

Tower said it has a significant reinsurance programme, which provides cover once it has paid out more than $10 million to affected policyholders.

General insurer Tower says its maximum exposure to Cyclone Winston in Fiji is $7.2 million but that it will take a number of days to assess the damage.

Twenty-one people are so far believed to have been killed from the impact of Winston, which hit the islands with wind speeds of up to 330 kilometres an hour.

Tower said it has a significant reinsurance programme, which provides cover once it has paid out more than $10 million to affected policyholders. However, the insurer warned it will be some days before the full financial implications of the cyclone are known, due to the difficulty of accessing the worst-hit areas. A further statement to the market will be issued when there is more clarity.

Chief executive Richard Harding said the company's immediate thoughts are with the people of Fiji, and that it's focused on assisting affected customers to get their homes and businesses restored and their lives back on track.

Tower shares were recently up 1.4% at $4.25. The stock has fallen 16% since the beginning of the year.

(BusinessDesk)