Outgoing Tower chairman Michael Stiassny says NZ has had ‘multiple wake up calls’ and while some progress has been made to address the impacts of extreme weather events, ‘it has been haphazard, inadequate and painfully slow'

At his final annual shareholder meeting as Tower chairman, Michael Stiassny says in the wake of tragic events at Mt Maunganui, Pāpāmoa and Warkworth, “we face a chilling reality”.

“Climate change is here, and it’s costing lives and money,” the outgoing chairman said on Wednesday.

“In recent years, we have had multiple wake up calls and yet while at a national level some progress has been made to address the impact of extreme weather events, it has been haphazard, inadequate and painfully slow,” Stiassny said.

“Look back three years to the devastation wrought by Cyclone Gabrielle and the Auckland Floods. Can we honestly say that in the intervening period we have seen decisive action that will prevent the loss of life? Are we confident that we are no longer building on flood plains or on vulnerable coastlines nationwide?"

“Are we confident that we have active flood prevention measures in place that will protect against more frequent and severe rain events? Are we confident that our infrastructure is resilient and will cope with large storms that are no longer anomalies?”

“The answer is a resounding no,” Stiassny said.

Insurers are ‘enablers of resilience’

Stiassny said insurers are in a unique position and with that, comes a unique responsibility.

“Insurers are not just observers of climate change; we are enablers of resilience.”

He said every insurance company had access to the same data Tower does, and the industry as a whole knows - “on a granular level” - the specific risks each home and property faces.

Central and local government also had access to this data, Stiassny said.

“They keep talking about a central register - well, it’s overdue. We must reach the point, immediately, where that information becomes the bible, the single source of truth.”

“Some of you probably never thought I would be a climate change crusader - but here I am. It’s here, it’s real - it’s not some woke issue, of which there are plenty," Stiassny said.

He went on to say climate change was not simply an environmental issue.

“Climate change is a financial issue.”

Stiassny is being succeeded by Naomi Ballantyne as Tower chairman. Ballantyne, has more than four decades of experience in the insurance industry. She was appointed an Officer of the New Zealand Order of Merit for services to the insurance industry in 2017.

The numbers

On Wednesday, Tower also provided an update on its trading performance for the four months ending January.

Tower chief executive Paul Johnston said “during the opening months of [September financial year] 2026, we have achieved continued strong growth in house policies, and premium growth, while also advancing our focus on operational and digital efficiencies alongside a continued low business as usual claims ratio”.

“This performance reflects disciplined risk selection and pricing and is further supported by ongoing investment in digital capabilities and modernised underwriting processes.”

Gross written premium, the total amount customers pay for insurance coverage on policies issued by the insurer, was up 2% to $204 million compared to the four months ending January 2025.

Tower has 323,000 customers and in the second half of this financial year, it will become Westpac NZ’s underwriter for house, contents, motor and landlord insurance products (replacing IAG NZ).

In a company statement, Tower said “the referral of a back book” would see it offering insurance to a portfolio of Kiwibank customers.

“Tower continues to support customers through large events. Tower has a $45m large events allowance for 2026 and in the first four months of the year recorded three large events with an estimated combined cost of $12.1m. This includes the October windstorm, the Timaru hailstorm in November, and the late January nationwide storm."

“Claims from the stormy weather across New Zealand over the past few days are still being assessed and at this early stage, Tower expects costs to exceed its $2 large events threshold.”

Tower has $32.9m available for the remaining eight months of the financial year. Any unused portion of this allowance at year-end will contribute to the underlying net profit after tax to improve the full year result, it said.

“Tower’s risk‑based pricing strategy continues to reduce portfolio exposure, with the expected average annual loss from flood, landslide, and sea‑surge hazards down 20% on a per‑policy basis and 14% overall compared to the same period last year,” the statement said.

For its 2025 financial year, Tower reported an “underlying profit after tax” of $107.2 million a jump from its 2024 result of $83.5 million.

In a company statement, it said the result was driven by low large events costs and a significantly reduced business-as-usual claims ratio, along with customer growth.

“Reported profit reflects adjustments for increased Canterbury earthquake claims cost estimates, the ongoing cost of customer remediations and a provision for software impairment.”

Gross written premium (the total amount customers pay for insurance coverage on policies issued by the insurer) was $600 million in 2025, up 2% from $595 million in 2024.

In its 2025 annual report, Tower said it had also renewed its reinsurance programme for 2026. This includes an increased catastrophe upper limit of $915 million for the first two events - this is up from $800 million in its 2025 financial year.

It also has cover for a third catastrophe event up to $85 million and $20 million excess for a third event which was unchanged from 2025.

Tower also has a reinsurance excess of $20 million for the first two events, up from $18.75 million in 2025, “due to the expiry of multi-year arrangements”, it said.

Insurance affordability review

Stiassny also spoke about the Government’s six-month home insurance affordability review.

“It’s framed up differently but to all intents and purposes echoes the banking and supermarket inquiries that left many New Zealanders wondering how much change would ultimately follow,” he said.

Tower was cooperating with the review, Stiassny said. “But let’s be very clear, when comparing 2024 to 2025, “Tower’s average sum of contents insured increased by between 1% and 1.5%, while the average premium dropped by 6% to 8%.”

He said the average premium renewal for motor experienced “sizable reductions” in 2025 and “while average house premiums peaked at a 4% increase at the beginning of its 2025 financial year, they have fallen steadily and dropped into negative territory since September”.

“The rate of premium increase is either on par with the sum insured increase or much lower.”

“In short, premiums have not climbed as much as some ministers have said," Stiassny said.

He said the real issue with insurance affordability was the cost of living more generally for New Zealanders.

“With costs of all goods and services spiralling up significantly more than incomes, it is inevitable that some people are unable to afford insurance. That is the issue that needs to be addressed.”

Stiassny also pointed out how a fire service levy and a levy for the Natural Hazards Commission makes up “roughly 40% to 43%” of insurance premiums.

This was something they had no control over, he said.

New chairman

Stiassny has been replaced by Naomi Ballantyne as Tower chairman.

In a statement from Tower, Ballantyne said it was an honour to be elected.

She said Tower was “a company with strong momentum, a clear purpose, and a talented team focused on delivering for customers across New Zealand and the Pacific”.

“I look forward to working with my fellow directors to support sustainable growth, continue to strengthen Tower’s future resilience, and deliver strong value for both customers and shareholders.”

Ballantyne has more than four decades of insurance experience and founded life and health insurance company Partners Life in 2011.

Pacific Media Network reported that in 2022, Ballantyne sold Partners Life to Japanese life insurance company Dai-ichi Life in a $1 billion deal.

She first joined the Tower Board in May 2025 to fill a casual vacancy and was re-elected on Wednesday, the statement said.