AUCKLAND: New Zealand-based insurer Tower Limited (NZX/ASX: TWR) has significantly raised its earnings forecast for the fiscal year ending 30 September 2024.

The company now anticipates its underlying net profit after tax (underlying NPAT) to exceed $35 million.

This optimistic projection marks a substantial increase from Tower’s previous guidance, which estimated the underlying NPAT to be at the higher end of the $22 million to $27 million range.

The revised forecast is predicated on the full deployment of the FY24 large events allowance, which is prudently pegged at $45 million. Notably, the financial year has yet to witness any major events that would impact this allowance.

The upward revision in profit expectations can be attributed to a combination of lower-than-anticipated routine claims costs and a surge in gross written premiums, bolstered by strong customer retention rates.

This financial buoyancy reflects Tower Limited’s robust operational performance and positions the insurer on a promising trajectory for the remainder of the year.