Tower takes big hit from fire

AUCKLAND: New Zealand insurance company Tower said it would take a $5 million to $7 million pretax hit from the Lake Ohau fire in its 2021 accounts.

Chief executive Blair Turnbull said the company had a team of people at Ohau offering support to customers after the fire, which destroyed 48 buildings and burnt through 5040 hectares of land.

‘‘Our thoughts are with everyone in the community who have been impacted by these fires and we will do everything we can to support them to rebuild their homes and community,’’ Mr Turnbull said in a statement.

Tower had received five total loss claims and four partial damage claims as a result of the Lake Ohau fire, near Twizel, which broke out on October 4.

The fire would not affect the September 30, 2020, financial result, which is due for release on November 25.

Local farmers said the blaze was made worse when flames raged through thick vegetation on Department of Conservation land.

Shares in Tower last traded on the NZX at 59.5c, down 0.5c from Friday’s close. —