Tower to hike premium rates to offset reinsurance costs
Posted On: May. 29, 2018 7:13 AM CSTNew Zealand-based insurer Tower Ltd. plans to increase premium rates to offset higher reinsurance costs after a spate of wild weather hit its earnings, NZHerald.co.nz reported. The insurer's earnings declined 27% to more than $7 million New Zealand ($5 million) in the six months ended March 31. Tower's reinsurance costs grew more than 7% to NZD 25.5 million, outpacing a 6% increase in premiums. The insurer's net loss totaled NZD 11.6 million following a NZD 16.5-million settlement with Hong Kong-based Peak Reinsurance Co. Ltd. over a policy dispute.