Slide 1: 2025 Full Year Results
2025 Full Year Results 1 October 2024 to 30 September 2025 27 November 2025
Slide 2: Agenda
AGENDA Chairman’s update Michael Stiassny, Chairman Business update Paul Johnston, Chief Executive Officer Financial performance Angus Shelton, Interim Chief Financial Officer Looking forward Paul Johnston, Chief Executive Officer
Slide 3: Chairman's update
Chairman’s update 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 • Shareholde
Slide 4: Business update
TOWER FY25 RESULTS Business update Paul Johnston, Chief Executive Officer
Slide 5: Overview
Overview Record FY25 result • Relatively benign claims environment – claims ratio historically low • Strong policy growth whilst soft rating cycle lowers GWP Strategic horizon 1: Focus on foundations • Foundations strengthened with key initiatives delivered in FY25 • Improvements in digitisation, ef
Slide 6: Entering the next phase of growth
Entering the next phase of growth Foundations laid to deliver Horizons 2 and 3 Resilience and We are Transform and Expanded Growth and Efficiencies entering Innovate Leadership Horizon 2 of our strategic HORIZON 1 plan HORIZON 2 HORIZON 3 2024-2025 2026 - 2027 2028 - 2030 • Building foundational str
Slide 7: Our performance
Our performance Strong operational and business performance 1 GWP growth Customers BAU claims ratio MER (Gross written premium) (Business as usual) (Management expense ratio) 2% | $600m 318,000 41% 31.4% vs $595m in FY24 vs 305,000 at FY24 vs 48% in FY24 vs 31.4% in FY24 Large event costs2 Underlyin
Slide 8: External factors influencing FY25 result
External factors influencing FY25 result • Large event claims costs of $7.2m well TOWER EFFECTIVE AVERAGE PREMIUM below historical 10-year average of $15m (ANNUAL CHANGE) • Competitive environment reduced motor premiums • Inflation now at historical averages • Motor theft frequency back to pre-Covid
Slide 9: Sustained profitability improvement
Sustained profitability improvement • Through-the-cycle (FY21 – FY25) profitability has UNDERLYING NPAT increased through business improvements: EXCLUDING LARGE EVENTS¹ • Targeted growth enabling scale • Risk selection and risk-based pricing improvements (Flood, Sea Surge, Landslide) • Expense effic
Slide 10: Policy growth in a competitive market
Policy growth in a competitive market NZ HOUSE MOVEMENT IN RISK COUNT (000’s) • +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 redu
Slide 11: Investing for future value
Investing for future value • 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 –
Slide 12: Elevating customer experience
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
Slide 13: Financial performance
TOWER FY25 RESULTS Financial performance Angus Shelton, Interim Chief Financial Officer
Slide 14: Group underlying performance
Group underlying performance • Gross written premium growth of 2%1 $ million FY25 FY24 Change • BAU claims ratio reduced to 41.3% due to Gross written premium 599.8 595.3 4.5 targeted rate increases, risk selection and Insurance revenue 597.1 566.2 30.9 relatively benign weather Reinsura
Slide 15: Movement in underlying NPAT
Movement in underlying NPAT • Underlying NPAT1 of $107.2m vs $83.5m in • Large event costs in FY25 of $7.2m before tax FY24 versus a release of $2.3m before tax in FY24 • Business growth reflects higher net insurance • Strategic investments to deliver future growth revenue less the associated growth
Slide 16: Rating pressure impacts GWP growth
Rating pressure impacts GWP growth GROSS WRITTEN PREMIUM ($m) • 2%1 premium growth reflects softer rating environment • NZ House GWP growth 10%; 11% policy growth • NZ Motor GWP growth -5%; 2% policy growth offset by rate reductions to balance margin and growth • Partnerships GWP growth of 12% • NZ
Slide 17: Lower frequency and severity of claims
Lower frequency and severity of claims NZ MOTOR SEVERITY1 & FREQUENCY2 • BAU claims ratio of 41.3% (FY24: 48.1%) due to high premium earning through as well as severity and frequency flattening off • Prior period high theft motor off-risking has lowered frequency and severity of motor claims • Reduc
Slide 18: Stable management expense ratio
Stable management expense ratio • Management expense ratio (MER) remained at • Timing differences related to recognition of 31.4% deferred acquisition costs increases MER by 0.7% • Scale efficiencies from business growth contributes 2.2% reduction in MER • Staff and other costs increasing from infla
Slide 19: Conservative investment strategy
Conservative investment strategy CORE INVESTMENT PORTFOLIO1 INVESTMENT ASSET PROFILE YIELD • Net investment income $19.2m; $2.4m lower • Conservative investment strategy with low than FY24 duration (target of 6 months) • Running yield on the core investment portfolio • Yields expected to remain supp
Slide 20: CEQ and customer remediation
CEQ and customer remediation Canterbury earthquakes (CEQ) • FY25 charge of $7.9m after tax, treated as a OPEN CEQ CLAIMS non-underlying item • 13 properties open as at 30 September 2025 • 22 new over cap or reopened claims from NHC in the year (+7 vs FY24), with an average cost higher than historica
Slide 21: Reinsurance programme
Reinsurance programme • Successfully renewed FY26 programme with a lower cost to GWP ratio reflecting changes to risk $915m profile, structure, and global market ratings • Catastrophe reinsurance of up to $915m for two events, (FY25: $800m) and an additional prepaid third event cover up to $85m Rein
Slide 22: Capital and solvency position
Capital and solvency position • Solvency ratio1 of 143% • Tower’s regulatory solvency position is TOWER SOLVENCY calculated under the second amendment to the Interim Solvency Standard (ISS), effective 1 NZ PARENT ($m) March 2025 • 30 September 2024 solvency position has been recalculated under the n
Slide 23: Looking forward
TOWER FY25 RESULTS Looking forward Paul Johnston, Chief Executive Officer
Slide 24: Entering the next phase of growth
Entering the next phase of growth Foundations laid to deliver Horizons 2 and 3 Resilience and We are Transform and Expanded Growth and Efficiencies entering Innovate Leadership Horizon 2 of our strategic HORIZON 3 HORIZON 1 plan HORIZON 2 2028 - 2030 2024-2025 2026 - 2027 • Broadening growth through
Slide 25: Strategic initiatives for growth
Strategic initiatives for growth • Targeting >$750m GWP in FY28 through organic growth • 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-polic
Slide 26: Customer experience and efficiency through innovation
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 • Claims transformation
Slide 27: FY26 guidance and future targets
FY26 guidance and future targets FY25 FY26 FY28 Actual Guidance Target $600m $630m - $660m >$750m GWP growth (2%) (5-10%) (>7.5% CAGR) Management expense ratio 31.4% 31% - 32% 28% - 30% Underlying NPAT $112m $87m - $97m (excluding large events) Large events $7m $45m Combined operating ratio 74% 86%
Slide 28: Questions?
TOWER FY25 RESULTS Questions?
Slide 29: Appendices
TOWER FY25 RESULTS Appendices
Slide 30: Business unit distribution
Business unit distribution TOWER DIRECT PARTNERSHIPS PACIFIC • No underlying growth1 in • Underlying growth of 12% • No underlying growth1 in FY25 due to policy growth FY25 due to risk review in • Total in force risks offset by premium rate Samoa increased 18% to 129,000 reductions • Solomon Islands
Slide 31: Reconciliation between underlying profit after tax and reported profit after tax
Reconciliation between underlying profit after tax and reported profit after tax Reclass of Underlying and reported profit: FY25 Non- Management Reclass of FY25 reinsurance & $ million underlying underlying expense reinsurance reported • “Net insurance revenue”, “net insurance service expense” other
Slide 32: Disclaimer
Disclaimer 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.towe