New Zealand insurer Tower’s net profit jumped 13% to $NZ83.7 million ($73.1 million) in the year to September, lifted by benign weather and fewer vehicle thefts.

Net profit was $NZ107.2 million ($93.6 million), excluding adjustments for increased Canterbury earthquake claim estimates, ongoing customer remediations and a software impairment provision.

CEO Paul Johnston says it is an “exceptional result”, but Tower expects conditions that have aided results for the past two years to “normalise in the coming year”.

It has forecast a net profit of $NZ55-$NZ65 million ($48-$57 million) this financial year, down 22%-34%.

Storms late last month are estimated to have cost $NZ4.5 million ($3.9 million).

In the year to September, large event costs totalled $NZ7 million ($6.1 million), driven by Cyclone Tam in April and Dunedin flooding in October last year.  

The combined operating ratio improved to 74.1% from 79%, while the business-as-usual claims ratio was 41.3%, down from 48% a year earlier.

Tower’s customer base grew 4%, with home insurance policies up 11%.

Gross written premium growth of 2% to $NZ600 million ($524.4 million) reflects strong volumes but lower average premiums.

The house portfolio’s GWP grew 10%, while motor declined 5%.

Tower says new address-level pricing meant 91% of new house policies were rated low or very low flood risk.