Slide 1: 2026 Half Year Results
2026 Half Year Results 1 October 2025 to 31 March 2026 21 May 2026
Slide 2: Agenda
AGENDA Chair’s update Naomi Ballantyne, Chair Business update Paul Johnston, Chief Executive Officer Financial performance Simon Hoole, Interim Chief Financial Officer Looking forward Paul Johnston, Chief Executive Officer 2
Slide 3: Chair’s update
Chair’s update Tower delivers strong performance through the cycle Resilient business delivering shareholder value • Interim dividend declared 5 cents per share • Shareholder returns supported by earnings • Strong capital and solvency Positioned for sustainable earnings growth • Delivering policy gr
Slide 4: Business update
TOWER HY26 RESULTS Business update Paul Johnston, Chief Executive Officer 4
Slide 5: Overview
Overview Strong HY26 earnings • Strong policy growth while soft rating cycle lowers GWP • BAU claims ratio trending upwards towards historical average • Four large events with a cost of $18.5m • Reported profit impacted by customer remediation Actions taken to strengthen performance and resilience •
Slide 6: What makes Tower different
What makes Tower different Kiwi-owned, uniquely advantaged Customer experience & technology • Transparency to customers • Streamlined platform and product set • High digital capability; My Tower and partnerships • AI enabled contact centre Underwriting and pricing • Targeted risk selection and compe
Slide 7: Our performance
Our performance Strong operational and business performance GWP growth Customer growth BAU claims ratio MER (Gross written premium) (Business as usual) (Management expense ratio) 1% | $301m 5% | 327k 44% 31% vs $297m in HY25 vs 312k at HY25 vs 38% in HY25 vs 30% in HY25 Large event costs Underlying
Slide 8: Factors influencing HY26 result
Factors influencing HY26 result Strong customer and policy growth • 5% growth in NZ policies year on year primarily UNDERLYING NPAT driven by partnership channel Average premiums • Reduction in higher risk properties contributed to a reduction in average house premiums • Market conditions suppressin
Slide 9: Actively managing economic headwinds
Actively managing economic headwinds Decisive actions are positioning Tower for stronger outcomes External factors Tower’s response • Passing cost and underwriting savings to customers driving strong policy growth • Activating switching market through increased brand and marketing spend Economic slo
Slide 10: Policy growth in a competitive market
Policy growth in a competitive market • +15k new customers to 327k TOTAL MOVEMENT IN NZ RISK COUNTS (000’s) • 5% growth in NZ policies year on year (house 9%, motor 3%, contents 5%) • Improved risk quality - Tower’s total expected average annual loss from perils reduced by: • 27% Sea surge • 10% Lan
Slide 11: Improvements in customer experience and efficiency
Improvements in customer experience and efficiency NET PROMOTER SCORE • Net promoter score improved to +50 (HY25: +41) • New Zealand tasks¹ completed digitally • 60% sales (no change) • 54% service (+7%) • 70% claims lodgement (+3%) • AI enabled contact centre reducing average call handling time; do
Slide 12: Large event claims
Large event claims • Four events1 in FY26 H1 with estimated cost of $18.5m • One large event has occurred since 31 March 2026; Wellington flooding event in April 2026 with an estimated cost of just under $5m • $45m large event allowance for FY26; $21.5m available for remainder of FY26 12 Note 1: Lar
Slide 13: Customer remediation programme
Customer remediation programme Customer remediation programme • HY26 charge of $10.9m after tax, predominantly related to one remediation and the complexity in calculating refunds associated with a legacy policy system • Includes further provision for remediation payments to customers, plus programm
Slide 14: Financial performance
TOWER HY26 RESULTS Financial performance Simon Hoole, Interim Chief Financial Officer 14
Slide 15: Group underlying performance
Group underlying performance • Gross written premium growth of 1% $ million HY26 HY25 Change • BAU claims ratio increased to 44% due to Gross written premium 300.8 297.0 3.8 targeted rate decreases, and higher frequency Insurance revenue 300.3 296.6 3.7 of weather events Reinsurance
Slide 16: Movement in underlying NPAT
Movement in underlying NPAT • Underlying NPAT1 of $36.8m vs $61.7m in HY25 • Large event costs in HY26 of $18.5m before tax versus $3m before tax in HY25 • Business growth reflects higher net insurance revenue less the associated growth in claims • Investment income impacted by lower yield and manag
Slide 17: Rating pressure impacts GWP growth
Rating pressure impacts GWP growth GROSS WRITTEN PREMIUM • 1% premium growth reflects softer rating environment • NZ House GWP growth 2%; 9% policy growth • NZ Motor GWP growth 0%; 3% policy growth • Partnerships GWP growth of 8% TOWER EFFECTIVE1 AVERAGE PREMIUM • NZ retention rate of 79% (HY25: 78%
Slide 18: Higher frequency and severity of claims
Higher frequency and severity of claims NZ MOTOR SEVERITY1 & FREQUENCY2 • BAU claims ratio of 44% (HY25: 38%) • BAU claims ratio will continue to increase towards historical average as rating changes earn through • Increased number of weather events has lifted frequency and severity for both house a
Slide 19: Stable management expense ratio
Stable management expense ratio MANAGEMENT EXPENSE RATIO (MER) • MER increased by 1% to 31.4% • Scale efficiencies from business growth contributes 0.4% reduction in MER • Increased marketing to support revenue growth • Software costs increase to improve customer experience and processes 19
Slide 20: Conservative investment strategy
Conservative investment strategy CORE INVESTMENT PORTFOLIO1 INVESTMENT ASSET PROFILE YIELD • Net investment income $5.1m; $4.9m lower than • Conservative investment strategy with low HY25 due to lower investment balances, yield, and duration (target of 6 months) mark to market losses from global mar
Slide 21: Capital and solvency position
Capital and solvency position • Solvency ratio1 of 143% TOWER SOLVENCY • Adjusted solvency margin as at 31 March 2026 is NZ PARENT $90.1m - stated net of interim dividend of 5 cents per share2 • Tower has an internal target solvency margin of $84.3m • A- financial strength rating reaffirmed in April
Slide 22: Looking forward
TOWER HY26 RESULTS Looking forward Paul Johnston, Chief Executive Officer 22
Slide 23: Second half priorities
Second half priorities • Launching new partnership with Westpac • Referral of Kiwibank back book • Contact centre enhancements and digital adoption • Progressing with AI implementation • Building customer data foundations to unlock personalisation • Customer remediation and implementing regulatory c
Slide 24: FY26 guidance and future targets
FY26 guidance and future targets HY26 FY26 FY28 Actual Guidance Target >$750m GWP growth 1% Low-single digit (>7.5% CAGR) Management expense ratio 31.4% 31% - 32% 28% - 30% Underlying NPAT $50m $87m - $97m (excluding large events) Large events $18.5m $45m Combined operating ratio 82.6% 86% - 88% 85%
Slide 25: Questions?
TOWER HY26 RESULTS Questions? 25
Slide 26: Appendices
TOWER HY26 RESULTS Appendices 26
Slide 27: Reinsurance programme
Reinsurance programme • Catastrophe reinsurance of up to $915m for two $915m events and an additional prepaid third event cover up to $85m • $20m retention for catastrophe events Reinsurance Reinsurance • Reinsurance programme also includes: coverage of coverage of $895m $895m • Excess of loss1 for
Slide 28: Business unit distribution
Business unit distribution TOWER DIRECT PARTNERSHIPS PACIFIC • Policy growth offset by • Underlying growth of 8% • Underlying growth of 1% premium rate reductions • Total in force risks • Continuation of risk review • In force risk growth in HY26 increased 15% to 136,000 across Pacific countries of
Slide 29: 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: HY26 Non- Management Reclass of HY26 reinsurance & • “Net insurance revenue”, “net insurance service expense” $ million underlying underlying expense reinsurance reported other
Slide 30: 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