Why is Tower stock gaining today?

Tower stock experienced a notable surge, climbing as high as 2.0% to NZ$2.08, following the insurer's delivery of an upgraded full-year profit outlook. The New Zealand and Pacific Islands-based company filed preliminary unaudited FY26 results with the NZX on October 6, 2026, which revealed a significant improvement in its underlying net profit after tax guidance.

The company now anticipates a range of NZ$69–79 million, an increase from the previous NZ$55–65 million estimate. This substantial upward revision was primarily attributed to large event claims totaling approximately NZ$25 million, which far exceeded the anticipated NZ$45 million budget allowance for the financial year ending September 30, 2026.

Additionally, the decline in reinsurance costs emerged as a secondary catalyst, dropping from 13.3% of gross written premium in the prior year to 10.7% in FY26. This improvement was a result of the successful renewal of Tower's reinsurance programme. Furthermore, the company witnessed an 8% increase in customer numbers to 345,000, while its gross written premium grew by 3% in line with guidance.

These developments can be attributed to Tower's competitive pricing strategy and its innovative approach to risk-based pricing, which has positively impacted the company's portfolio quality.