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TOWER Market Information NZX Limited Level 1 , NZX Centre 11 Cable Street Wellington New Zealand Company Announcements Office ASX Limited Exchange Centre Level 6 , 20 Bridge Street Sydney NSW 2000 Australia TOWER Limited Level 14 , 45 Queen Street Auckland 1142 , New Zealand ARBN 645 941 028 Incorporated in New Zealand 17 May 2021 Tower Insurance Updates Guidance Tower Limited ( NZX / ASX : TWR ) has today revised its guidance on underlying profit for the 2021 financial year . The company now expects underlying net profit after tax ( NPAT ) of $ 25 million to $ 27 million for the year ended 30 September 2021. The previously announced guidance was for underlying NPAT of greater than $ 29.8 million . In addition to higher frequency of house claims , this revision reflects emerging industry trends relating to inflationary pressures on building costs . Growth in Gross Written Premium ( GWP ) is forecast to be 5 % or greater , despite declining GWP in the Pacific business due to Covid - 19 . Tower also expects continuing improvement in its management expense ratio . Higher claims costs are largely being driven by an increased frequency of large house claims ( claims totalling more than $ 50,000 ) , with Tower accepting 52 large house claims totalling $ 9m in the first half . This compares to 26 large house claims worth $ 4.9m in the corresponding period of FY20 . Tower has also noted emerging house claims inflation across the portfolio . The low interest rate environment is impacting investment income , with $ 0.6m income in the first half of 2021 compared with $ 2.2m in the corresponding period of 2020 . CEO Blair Turnbull says , " While there is always volatility in claims , we recognise that these emerging external pressures need to be quickly addressed . We have commenced an accelerated assessment of our FY21 claims experience to enable the company to determine adjustments to claims processes and pricing . The company intends to act decisively to adopt new approaches to manage this risk and strengthen our position . " Fortunately , Tower's digital systems and processes mean we are well placed to respond rapidly with rating and underwriting actions to address higher claims levels . We are also working with our supply chain to moderate increases . These actions will take time to gain traction , however we expect to begin realising benefits in the second half , " he said . Separately , following a review of the FY21 reinsurance programme , there could potentially be an increase in the full year reinsurance costs for FY21 . It is anticipated the additional costs , if any , would be within the tolerances of this guidance . The full year guidance will be discussed in more detail at the interim result announcement on 26 May , 2021 . Tower remains committed to its dividend policy of paying 60 % to 80 % of cash earnings where it is prudent to do so . Accordingly , the Board anticipates declaring an interim dividend of 2.5 cents per share next week . Mr Turnbull says , " Tower remains confident that our current strategy delivers sustainable value , and that the positive initiatives we are undertaking along with new partnerships will add significant growth in premiums and profitability , beginning late in FY21 but with the full benefits realised in FY22 and beyond . "