Why the Tower (ASX:TWR) share price is up 4% today

The TOWER Limited (ASX: TWR) share price lifted today after the company entered a settlement agreement with the Earthquake Commission (EQC). The deal regards an outstanding receivable resulting from Canterbury earthquakes. At the time of writing, the Tower share price is up 4.6% to 58.5 cents. In comparison, the All Ordinaries Index (ASX: XAO) is hovering above 1.2% to 6,855 points.

Let’s take a closer look at the New Zealand-based insurer and what’s driving the Tower share price higher today.

Settlement reached

Tower said it had settled with EQC for $42.1 million, with the funds including disbursement to reinsurers and costs.

The company advised that the write-off of the residual amount would impact its FY20 reported net…