New Zealand insurer Tower has announced the successful placement of additional reinsurance reinstatement cover for the remainder of the fiscal year ending Sept. 30.
This development follows the insurer’s recent indication of purchasing additional catastrophe reinsurance to cover the increased estimate for the North Island floods in February. Earlier this month, insurance data provider PERILS put the total industry losses for the weather event at $1.754 billion, 6% higher than its initial estimate.
According to the official news release, Tower had protection for a potential third catastrophe event of up to $889 million in this financial year prior to this reinstatement. With this purchase of an additional $100 million in cover, Tower is now reinsured for a fourth catastrophe event of up to $889 million in the same fiscal year.
The insurer also said that it has sufficient reinstatement coverage for Cyclone Gabrielle claims, the industry losses of which were placed at $1.925 billion, 25% higher than the original estimate. Further details on the reinsurance program will be discussed during Tower’s half-year presentations on May 25.
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