Tower shares slide as flood claims continue

Insurance claims are continuing after the Auckland floods. Photo / Hayden Woodward

Shares in listed insurer Tower slumped 8.5 per cent on the NZX this morning following extensive flooding in and around Auckland.

Shortly after 10.30am Tower was trading at 65c, down 6c or 8.45 per cent on Friday’s closing price.

Tower said yesterday in less than 48 hours after the floods struck, it had received more than 1000 claims from flood-hit New Zealanders.

Insurers swamped with claims after Friday’s deadly floods have taken on extra staff, even flying in assessors from overseas to handle the work.

At least 9000 claims were lodged with insurance companies by early afternoon on Sunday.

“It’s too soon to estimate event costs but the damage is heartbreaking, the losses we are seeing are substantial,” Tower chief claims officer Steve Wilson said yesterday.

Suncorp said Vero and AA Insurance (which it part owns) had also received at least 3000 claims from the storm.

Insurance Australia Group (IAG) said it has received more than 5000 claims resulting from the floods that hit Auckland on Friday.

The insurer said the claims were received from its AMI, State and NZI brands, and that it urged customers to lodge claims as soon as possible.

“It is currently too early to determine the financial impact of the Auckland event. As the financial impact of the Auckland event becomes clearer, IAG may review its estimate for full-year 2023 natural peril costs,” it said in a statement.

“The claims are across consumer, business, motor and corporate and the rate of claims lodgements is increasing sharply,” Suncorp NZ chief executive Jimmy Higgins said.

Other stocks to fall this morning included retirement village operators Radius, down 3 per cent, and Arvida, down 1 per cent.

Arvida told the NZX it had experienced serious flooding in part of its Parklane retirement community.

None of its other Auckland retirement communities were badly affected.

Affected Parklane residents were evacuated from their homes on Friday night and successfully relocated to temporary accommodation, the company said.

“The flood damage to affected villas, apartments and the clubhouse is currently being assessed,” Arvida said, adding that the company had comprehensive insurance in place.

Retailer Michael Hill was also down in early trading, its shares falling 3c, or 2.5 per cent to $1.18.

The S&P/NZX50 index was flat at 12,041 points.

Fonterra milk tanker leaving farm. Photo / Damian Alexander/Likeminds Agency / Supplied by Fonterra

Meanwhile, milk continues to be picked up from most Auckland and Waikato farmers despite the widespread flooding, although some farms in the Coromandel were cut off.

The country’s biggest business, dairy company Fonterra, said there had been only minimal disruption to tanker milk collections and supermarket deliveries.

“We have generally been able to collect everything from around Auckland. We have been unable to collect only a small amount of milk from a handful of farms”, said Paul Phipps, general manager of national transport and logistics.

“The main issue has been in Coromandel where flooding and road slips have made collections more difficult. As such, we have not been able to collect milk from a number of farms in that area.”

The country’s second biggest dairy company, Open Country, said milk collection had continued successfully in Waikato despite challenging conditions.

Chief executive Steve Koekemoer said two farms had experienced disruption in their milk pickups but “the tanker team had done an outstanding job”.