(Reuters) – New Zealand-based general insurer Tower Ltd on Tuesday reported a jump in number of claims from damages caused by Cyclone Gabrielle and adverse climate in Auckland and Upper North Island, amid warnings of more turbulent weather.
Tower said claims from damage related to Cyclone Gabrielle jumped to 2,200 from the 945 received by Feb. 17 and expects more to follow, while those from Auckland and Upper North Island rose to 5,325 from 4,850.
Severe weather conditions hit the North Island on Friday, while storms triggered flash floods and evacuation warnings in and around Auckland.
Earlier this month, Tower cut its full-year underlying net profit after tax forecast to between NZ$18 million ($11.09 million) and NZ$23 million due to inclement weather and had slashed its dividend forecast to 5 New Zealand cents per share.
The company’s estimate for the ultimate cost of Auckland and Upper North Island weather event is in the range of NZ$95 million to NZ$125 million.
Tower said it continues to actively manage external factors that put pressure on claims costs in the quarter and reported a 12.5% growth in its gross written premium to NZ$123 million in the first quarter.
($1 = 1.6226 New Zealand dollars)
(Reporting by Ayushman Ojha in Bengaluru; Editing by Krishna Chandra Eluri)
