Credit Suisse has decreased its target price on general and life insurer Tower following its updated reinstatement cover. The company expects second-half costs to rise by between $NZ7 million and $NZ11 million as a result of the June 13 Christchurch aftershocks. This adds to the $NZ20 million cost of the initial February disaster.

Earnings for the full year to June have already been affected by the first earthquake and analysts have now lowered net profit forecasts by 39 per cent, pushing the valuation and target price down by 3 per cent to $NZ2.03, from $2.10.