Tower has updated its earnings guidance for the fiscal year ending Sept. 30.

The Kiwi insurer expects its full-year underlying net profit after tax to exceed $40 million, up from the previously advised figure of over $35 million.

The revision is due to positive trading conditions, including unseasonably mild weather over the past two months.

Despite two storms in New Zealand in May, the claims costs were relatively low and did not meet the threshold for large events.