7 Aug 2013

Extra $80 million in capital now required by Reserve Bank

10:03 am on 7 August 2013

Tower says the Reserve Bank now requires a minimum solvency margin of $80 million above the minimum solvency capital.

The additional capital is required in light of the Canterbury earthquakes and the way the Reserve Bank has treated other insurance companies.

Chief executive David Hancock said the company's sale of most of its life insurance operations settled on 1 August, give Tower readily-available funds to meet the new requirements.

He said Tower has settled more than 69% of its claims by number resulting from the Canterbury quakes.