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Last month's floods in Auckland, Northland and Coromandel, as well as tornadoes in Taranaki, have dampened listed insurer Tower's full-year profit expectations.
According to the Insurance Council, severe weather in the North Island would cost the industry $70 million in related claims.
Yesterday, Tower chief executive Rob Flannagan said the flooding and tornadoes had resulted in about $4 million in claims for the company, the only general insurer on the New Zealand sharemarket.
The financial effect meant claims were now likely to exceed budget by about $2.7 million after tax, a sum Flannagan said would come straight off the company's second-half net profit.
Last year, Tower's New Zealand full-year net profit was $33.8 million.
While the second half of the financial year is usually a costly period for the insurer because of a seasonal increase in claims, "the company's recent claims experience has exceeded the normal expectation", said Flannagan.
Recent extreme weather events were an issue for the whole industry.
Flannagan has previously said he expected premiums to rise, because most general insurers were losing money as premiums were insufficient to cover claims which appeared to be rising as a result of unusual weather events.
Tower shares closed 2c higher at $2.32 yesterday.
