TOWER Ltd. will receive NZ$22 million as part of a settlement agreement with Peak Reinsurance Co. Ltd. regarding an adverse development cover policy entered into in 2015.
TOWER said the NZ$22 million is part of the NZ$43.75 million claimed under the reinsurance contract and all sums claimed in the arbitration proceeding. The company will see a NZ$15.2 million after-tax impact on profit from the write-off of the residual amount, according to a Feb. 28 release.
As a result of the settlement, TOWER unit TOWER Insurance Ltd. expects to hold about NZ$136 million of solvency capital.
As of Feb. 27, US$1 was equivalent to NZ$1.38.
