Tower (ASX:TWR) Updates FY25 Guidance
Financial Performance
Tower has revised its full year underlying net profit after tax (NPAT) for FY25 to between $60 million and $70 million, up from the previous $50 million to $60 million. This revision assumes full utilisation of the $50 million large events allowance. To date, Tower has recorded one large event – the Dunedin flooding event in October – with an estimated cost of around $3 million.
Gross Written Premiums
Guidance for gross written premiums (GWP) is adjusted to between 7% and 12%, down from the earlier 10% to 15%. Despite strong customer growth in the first three months, a reduction in average premiums due to an increased proportion of lower risk house and motor policies contributed to lower-than-expected GWP growth.
Combined Operating Ratio
The combined operating ratio (COR) guidance has improved to between 84% and 86%, a reduction from the previous range of 87% to 89%.
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