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1 TOWER Level 5 , 136 Fanshawe Street Auckland 1142 , New Zealand ARBN 645 941 028 Incorporated in New Zealand 22 September , 2021 Tower Updates Guidance Tower Limited ( NZX / ASX : TWR ) has today revised its guidance on underlying net profit after tax ( NPAT ) for the year ending 30 September 2021 to $ 19m to $ 21m , from between $ 22m and $ 24m . Large house claims in FY21 are continuing to be above long - term averages , particularly over the last quarter , including four total loss fires in the past week . FY21 large house claims now number 97 claims totalling approximately $ 21.3m compared to 56 in FY20 totalling $ 10.4m . While operational improvements and growth strategies at Tower remain on track , this revision reflects ongoing challenges raised at the interim result announcement in May continuing to influence financial performance in the second half . Industry wide inflation is a continuing source of pressure on both motor and house claims . This is predominantly being driven by a 14 % rise in the value of second - hand vehicles and increased costs of house materials which rose 4.6 % in the June quarter alone due to supply chain constraints . Tower has taken decisive actions to proactively address the impacts of claims inflation since the half year , some of which will take time to flow through to financial performance . These include rating and underwriting actions ; strengthening our claims management processes ; and working with our supply chain to manage increases . While the current Covid - 19 lockdown has offset some of the impact of the above issues , it has only partially alleviated claims costs . Tower remains in a strong capital and solvency position . At the half year the company paid a 2.5c dividend and expects to pay a final dividend in line with its policy at the full year . Tower will provide comprehensive detail at the full year results announcement on 24 November . ENDS This announcement has been authorised by the Tower Board . Blair Turnbull Chief Executive Officer Tower Limited For media enquiries , please contact in the first instance : Emily Davies Head of Corporate Affairs and Reputation +64 21 815 149 emily.davies@tower.co.nz