Oct 16 (Reuters) - New Zealand's Tower on Monday lifted its full-year profit forecast, citing lower-than-expected costs from Vanuatu cyclone claims, favourable foreign exchange rates, and no large events since May 9.

The insurer now expects to post an underlying net profit after tax between NZ$7 million to NZ$10 million ($4.14 million-$5.92 million) in fiscal 2023, compared with an earlier forecast for between a loss of NZ$2 million and a profit of NZ$3 million.

($1 = 1.6903 New Zealand dollars) (Reporting by Echha Jain; Editing by Jan Harvey)