Historical setup
What FY25 said to watch
From Combined ratio fell to 74.1% as underwriting result rose to NZ$133.9m
Tower has indicated 5-10% GWP CAGR across FY26-FY28, but no specific FY26 combined-ratio or NPAT target is in the supplied materials. The current 74.1% combined ratio is meaningfully better than the disclosed 87-89% target band, which signals headroom versus internal expectations - though that gap is partly cat-light.
HY25 NPAT of NZ$49.7m represented 59.4% of full-year NPAT, implying second-half NPAT moderated to roughly NZ$33.9m. That shape suggests claims experience and possibly investment income normalised somewhat in H2. What matters from here is whether rate adequacy keeps pace with claims inflation now that the headline rate increases have largely flowed through, and whether the next normal-cat year tests the BAU base.