Slides
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Tower Annual Shareholder Meeting 2026 18 February 2026
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Questions Shareholder & Proxyholder Q&A Participation Written Questions: Questions may be submitted ahead of the meeting. If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime. Type your question into the field and press submit. Your question will be immediately submitted. Help: The Q&A tab can also be used for immediate help. If you need assistance, please submit your query in the same manner as typing a question and a Computershare representative will respond to you directly. Phone numbers: NZ - 0800-650-034 / Overseas - +64 9 488 7800 2
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Voting process Shareholder & Proxyholder Voting Once the voting has been opened, the resolutions and voting options will allow voting. To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen. You can vote for all resolutions at once or by each resolution. Your vote has been cast when the tick appears. To change your vote, select ‘Change Your Vote’. 3
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AGENDA Chairman’s address Michael Stiassny, Chairman CEO address Paul Johnston, Chief Executive Officer Shareholder resolutions Questions & general business Michael Stiassny, Chairman 4
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Competitive advantages set Tower apart • Single core digital platform with address level risk-based pricing • Digital enabled strategic partnerships and brand momentum underpin future growth • Investing in innovation, technology and AI Chairman’s address Tower delivers record FY25 performance and positions for future growth Strong, resilient business delivering shareholder value • Capital return of $45m delivered • Final dividend declared 16.5 cents per share; full year dividends of 24.5 cents per share – fully imputed • Shareholder returns supported by sustainable profit growth • Strong capital and solvency 5 Supporting customer affordability • Average premiums reduced in FY25 across core products
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CEO’s address Paul Johnston, Chief Executive Officer 6
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Delivering the next phase of growth Foundations laid to deliver Horizons 2 and 3 E x p a n d e d G r o w t h a n d L e a d e r s h i p T r a n s f o r m a n d I n n o v a t e R e s i l i e n c e a n d E f f i c i e n c i e s We are entering Horizon 2 of our strategic plan H O R I Z O N 1 2 0 2 4- 2 0 2 5 • Building foundational strength • Well-managed risk exposure • Operational efficiencies • Technology investments • Improving customer experience • Effective and distinctive culture H O R I Z O N 2 2 0 2 6 - 2 0 2 7 • Sustainable growth • Leading customer experience • Investment in customer data, digitisation, and innovation • Embedding AI • Consistently improving earnings H O R I Z O N 3 2 0 2 8 - 2 0 3 0 • Broadening growth through new channels and innovative products • Market challenger market leader • Leading brand • Highly automated/digital • Personalised customer experiences 7
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FY25 performance Strong operational and business performance 24.5 cents 41% vs 48% in FY24 BAU claims ratio (Business as usual) MER (Management expense ratio) 31.4% vs 31.4% in FY24 Large event costs $7.2m vs -$2.3m in FY24 Reported profit $83.7m vs $74.3m in FY24 Note 1: Excluding divested portfolios which include the Solomon Islands business and Vanuatu subsidiary, and the New Zealand commercial rural portfolio Note 2: Large event costs were negative in FY24 due to the absence of large events in the financial year and a favourable revision to prior year large events costs Note 3: Definition of underlying profit and a reconciliation to reported profit is included in the appendices GWP growth (Gross written premium) 2% | $600m vs $595m in FY24 $107.2m vs $83.5m in FY24 Underlying profit 318,000 vs 305,000 at FY24 Customers 2 3 Dividend per share Total FY25 declared dividends vs 9.5 cents, $45m capital return announced in FY24 1 8
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• Large event claims costs of $7.2m well below historical 10-year average of $15m • Competitive environment improving customer affordability • Inflation now at historical averages • Motor theft frequency back to pre-Covid levels • OCR decrease reduces investment income yields FY25: External factors influencing financial result TOWER TOTAL CLAIMS RATIO • Effective average premium highlights impact of change in technical premium, excesses, and sum insured on GWP TOWER EFFECTIVE AVERAGE PREMIUM (ANNUAL CHANGE) 9
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FY25: Policy growth in a competitive market • +13k new customers to 318k • 6% growth in NZ policies (house 11%, motor 2%, contents 7%) • Strategic focus towards house is providing results • Improved risk quality - Tower's expected average annual loss from flood reduced 21% on a per policy basis and 16% overall • New brand campaign “The Misses” launched winning Kantar’s June 2025 Ad impact award NZ HOUSE MOVEMENT IN RISK COUNT (000’s) NZ MOTOR MOVEMENT IN RISK COUNT (000’s) 10
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FY25: Investing for future value One core digital platform and simplified core product set enables technology enhancements: • Launched Amazon Connect - AI enabled contact centre platform, streamlining processes and reducing frontline effort • Integrated motor assessing system - reducing assessment time, manual effort on claims handling, and repair costs • Digitisation build nearing completion – digital service capability at 79% • Risk based pricing enhancements - Landslide and sea surge delivering improved risk quality • AI enablement – strengthened foundations to deliver AI efficiencies across FY26-FY27 11
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FY25: Elevating customer experience • Net promoter score improved to +44 (FY24: +38) • Sales and service abandonment rate reduced by 1% to 7% • Digital efficiency: New Zealand digital tasks¹ – 63% sales, 51% service; 70% claims lodgement • 59% of NZ customers registered for MyTower (FY24: 53%) • Suva Hub answering 83% of NZ sales and service calls (FY24: 55%) • CRM Contact Centre Awards (NZ): Insurance sector award winner 2025 Note 1: Sales tasks are all New Zealand new business policies sold online (previously reported as Tower Direct only). Service tasks are either digital (actioned by the customer through the My Tower portal online) or assisted (through Tower’s call centre). In prior years, multiple tasks completed on the same call were reported as one assisted transaction - these are now reported individually. Digital claims tasks refer to claim lodgement only. . 12
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Sustained profitability improvement • Through-the-cycle (FY21 – FY25) profitability has increased through business improvements: • Targeted growth enabling scale • Risk selection and risk-based pricing improvements (Flood, Sea Surge, Landslide) • Expense efficiencies from technology & Suva Hub • Foundational risk and resilience improvement • Assisted by benign BAU claims experience in last two years • FY26 guidance assumes soft rating cycle continues and normalisation of BAU claims ratio UNDERLYING NPAT EXCLUDING LARGE EVENTS¹ Note 1: The net cost to Tower of large event costs after tax for each financial year is as follows: FY21 $10m, FY22 $13.3m, FY23 $40.1m, FY24 -$1.6m, FY25 $5.2m13
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Four-month trading update For the four months to January 31, 2026 14
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FY26 four-month trading update Strong operational and business performance 43% vs 38% in Jan 2025 BAU claims ratio (Business as usual) MER (Management expense ratio) 30.5% vs 30.1% in Jan 2025 Large event costs $12.1m vs $3.1m in Jan 2025 GWP growth (Gross written premium) 2% | $204m vs $200m in Jan 2025 323,000 vs 311,000 in Jan 2025 Customers Solvency ratio 160% vs 143% as at Sep 2025 15
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FY26: Stabilised pricing and increased policy volumes underpin positive GWP growth • 5% growth in NZ policies (house 10%, contents 6%, motor 2%) • 2% GWP growth vs same period prior year • 12,000 new customers compared to 31 January 2025 • Rating environment has stabilised • Westpac partnership and Kiwibank back book go live in H2 FY26 TOWER EFFECTIVE AVERAGE PREMIUM (ANNUAL CHANGE) GWP GROWTH (4 MONTH ROLLING) 16
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FY26: BAU claims ratio remains below historical average • BAU claims ratio increased to 43% but remains well below historical average of 48%-50% • Premium rate decreases in FY25 will continue to increase the BAU claims ratio as new rates earn through • Claims transformation continuing to deliver improvements: • 53% of NZ motor claims went straight through to repairer (+9%) • 74% utilization of preferred partner network (+5%) BAU CLAIMS RATIO 17
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FY26: Large event claims FY26 events • FY26 large event costs to date of $12.1m; 3 events • $45m large event allowance - $32.9m available for remaining 8 months Large event response • Tower's expected average annual loss from flood, landslide and sea surge reduced 20% on a per policy basis and 14% overall vs same period last year • Customer response; automated SMS messaging to affected areas, 23k sent for January event • Digital lodgement and straight through processing improves response times to customers • Scalability through third party claim managers and assessors when required 18 Claims reported as at 31 January 2026 where >40 claims reported per region per event
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FY26: Investing to improve efficiency and customer experience • NPS improved to +52 • Amazon Connect (launched end of FY25) has significantly reduced average call time - down by 2 minutes • Two-way integration of motor assessing platform (launched end of FY25) reducing manual effort: • 24% of NZ motor claim reserves were automatically updated (vs 0% in FY25) • 46% of NZ motor claim payments were automatically processed (vs 0% in FY25) • Streamlined geographical operations NET PROMOTER SCORE MANAGEMENT EXPENSE RATIO 19
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FY26: Solvency remains strong • Tower had an estimated¹ solvency ratio of 160% as at 31 January 2026; an increase from 143% as at 30 September 2025 • Adjusted solvency margin as at 31 January 2026 was $121.1m, an increase of $32.1m from 30 September 2025 • Tower has an internal target solvency margin of $84.3m • Final FY25 dividend of 16.5 cents per share paid in January 2026 • A- financial strength rating TOWER SOLVENCY NZ PARENT ($m) Note 1: Solvency is based on unaudited management accounts as at 31 January 2026. This has been reviewed by the appointed actuary 20
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Looking forward 21
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• Targeting >$750m GWP in FY28 through organic growth • Digital enabled partnership agreement with Westpac NZ • Referral of Kiwibank back book • Investing further in Tower brand marketing • Sea surge and landslide risk ratings improve targeting of lower risk properties • Multi-policy discount removal simplifies pricing offering Strategic growth initiatives 22
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Customer experience and efficiency through innovation • Targeting 80% of sales, service, and claims lodgement tasks to be through digital channels by FY28 • Customer data platform to enable hyper-personalised service in future • AI enablement roll out to streamline processes • Partnership with Amazon Connect enabling best-in- class enhancements to new contact centre platform • Product innovation to meet emerging customer needs 23
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FY26 guidance and future targets • Any unused portion of the large events allowance (after tax) at year end will increase underlying NPAT to improve the full year result. • Reported NPAT will be impacted by non-underlying items for remediation activity and costs associated with regulatory change FY25 Actual FY26 Guidance FY28 Target GWP growth $600m (2%) $630m - $660m (5-10%) >$750m (>7.5% CAGR) Management expense ratio 31.4% 31% - 32% 28% - 30% Underlying NPAT (excluding large events) $112m $87m - $97m Large events $7m $45m Combined operating ratio 74% 86% - 88% 85% - 87% Underlying NPAT (assuming full utilisation of large events allowance in FY26) $107m $55m - $65m 24
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A journey of progress and transformation 25
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Shareholder resolutions Michael Stiassny, Chair 26
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Shareholder resolutions Resolution 1 • That the Board be authorised to determine the auditor’s fees and expenses for the 2026 financial year. Resolution 2 • That Geraldine McBride, who retires by rotation in accordance with NZX Listing Rule 2.7.1, be re- elected as a Director of Tower. Resolution 3 • That Naomi Ballantyne, who retires in accordance with NZX Listing Rule 2.7.1, be elected as a Director of Tower. 27
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Questions? 28
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This presentation has been prepared by Tower Limited to provide shareholders with information on Tower’s business. This document is part of, and should be read in conjunction with an oral briefing to be given by Tower. A copy of this webcast of the briefing is available at http://www.tower.co.nz/investor-centre/ It contains summary information about Tower as at 30 September 2025 and 31 January 2026 which is general in nature, and does not purport to contain all information a prospective investor should consider when evaluating an investment. It is not an offer or invitation to buy Tower shares. Investors must rely on their own enquiries and seek appropriate professional advice in relation to the information and statements in relation to the proposed prospects, business and operations of Tower. The data contained in this document is for illustrative purposes only. Past performance is not a guarantee of future performance and must not be relied on as such. The information in this presentation does not constitute financial advice. Forward looking statements This document contains certain forward-looking statements. Such statements relate to events and depend on circumstances that will occur in the future and are subject to risks, uncertainties and assumptions. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements, including, among others: the enactment of legislation or regulation that may impose costs or restrict activities; the re- negotiation of contracts; fluctuations in demand and pricing in the industry; fluctuations in exchange controls; changes in government policy and taxation; industrial disputes; and war and terrorism. These forward-looking statements speak only as at the date of this document. Disclaimer Neither Tower nor any of its advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents (other persons) makes any representation or warranty as to the currency, accuracy, reliability or completeness of information in this presentation. To the maximum extent permitted by law, Tower and the other persons expressly disclaim any liability incurred as a result of the information in this presentation being inaccurate or incomplete in any way. The statements made in this presentation are made only as at the date of this presentation. The accuracy of the information in this presentation remains subject to change without notice. Disclaimer 29