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TOWER Market Information NZX Limited Level 1 , NZX Centre 11 Cable Street Wellington New Zealand Tower Limited Level 14 , 45 Queen Street Auckland 1142 , New Zealand ARBN 645 941 028 Incorporated in New Zealand Company Announcements Office ASX Limited Exchange Centre Level 6 , 20 Bridge Street Sydney NSW 2000 Australia 26 May , 2021 Tower records sound half year result , restarts dividend payments and reinforces positive long - term growth Kiwi insurer , Tower Limited ( NZX / ASX : TWR ) has today reported half year profit of $ 12m , down from $ 14.9m for the half year 2020. Underlying profit before large events was $ 18m , 5 % lower than the prior year . Positive growth and ongoing reduction in management expenses have been offset by several factors that Tower has taken decisive action to address . These include an increase in large events and large house claims , rising building costs , and lower investment income . The large events comprise a $ 9.3m impact before tax , up from $ 2.8m in HY20 , and included the large fire at Lake Ōhau village and severe flooding in Napier in late 2020 . Recognising increasing house claims cost and reducing investment income , Tower has revised its underlying net profit after tax FY21 guidance to a range of $ 25m to $ 27m , assuming large events of $ 9.7m . Tower's technology and distribution strategy continues to deliver growth with the insurer increasing gross written premium ( GWP ) by 6 % to $ 194m over the six months to 31 March . This was achieved despite the Pacific business declining 16 % primarily as a result of economic challenges related to Covid - 19 . Tower's flagship Direct business grew 14 % and its Partnership business grew by 3 % over the period . New Zealand personal lines market share increased to 9.3 % from 8.6 % in HY20 . Disciplined cost control and improved efficiencies have seen Tower's overall management expense ratio ( MER ) improve to 36.5 % versus 39 % in HY20 , with its Tower Direct business improving MER to 31 % . Tower is well capitalised and confirmed its first dividend in five years Tower confirmed a dividend of 2.5 cents to be paid on 14 July , reflecting resolving legacy issues and consistent growth . Under Tower's dividend policy , the full year guidance would equate to an approximate full year dividend payment in the range of 5 cents to 5.5 cents per share . As at 31 March Tower's ( New Zealand Parent ) solvency ratio was 309 % and the company was holding $ 97m above the regulatory solvency requirement . A focus on claims and supply chain Tower CEO Blair Turnbull says the company has performed well in a number of key areas and these will continue to improve as Tower progresses its technology and distribution strategy . At the same time Tower is proactively addressing factors that have impacted profits this half . The frequency of large house claims ( claims totalling more than $ 50,000 ) has doubled to 52 large house claims totalling $ 9m in the first half compared to 26 large house claims worth $ 4.9m in the corresponding period of FY20 . Over the past year the average cost of house claims has risen 8 % to $ 4,620 per claim reflecting rising building costs .