Tower revises earnings guidance upward to NZ$79M

• Tower upgraded its full-year underlying profit forecast to between NZ$69 million and NZ$79 million.
• Unused weather event allowances boosted the insurer's expected profit margin by NZ$14 million after tax.
• Strong customer expansion in New Zealand helped drive total customer numbers up by 8%.

New Zealand insurer Tower (ASX:TWR) raised its full-year underlying net profit forecast to between NZ$69 million and NZ$79 million.

The new projection compares with previous guidance of NZ$55 million to NZ$65 million following a return to standard earnings conditions.

Tower recorded large event claim costs of around NZ$25 million compared to its initial NZ$45 million allowance.

The company stated that reported profit will still reflect costs from an ongoing customer remediation programme.

Tower expects to release its finalised financial results on Nov. 26. Following the announcement, the Tower share price was unchanged at $1.61.

Customer numbers grew by 8% over the year to reach 345,000 total accounts. Gross written premium increased by 3% in line with low single-digit company targets.