Tower Net Profit up 82% on Strong Performance

Friday, 25 May 2012, 9:29 am
Press Release: Tower Insurance

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For immediate release

25 May 2012

Tower Net Profit up 82% on Strong Performance

(Auckland – NZ) TOWER Limited today reported a net profit of $23.6 million for the six months to 31 March 2012, an 82% increase over the same period the previous year, and will pay an interim unimputed dividend of 5 cents per share on 2 July.

The Group’s strong result reflects improved financial performance across all business units and recovery from insurance claims and costs associated with the Christchurch earthquakes. This is even after catastrophe claims impacting profit by $4 million in this period.

For the reporting period, the Life business almost doubled net profit to $12.4 million, compared with $6.3 million in 2011. The General Insurance profit increased from $4.6 million for the previous corresponding six months to $5.4 million for the period. The net profit posted by the Health business of $6.8 million and by the Investments business of $3.6 million, also represented improvements.

“Throughout the reporting period, our priority was to focus on getting the basics right through achieving higher revenue growth while maintaining a disciplined approach to costs,” Group Managing Director, Rob Flannagan said.

There was also a strong emphasis on proactively managing risks and investments, he said.

TOWER is in a solid financial position with gearing at 14.6% and net asset backing rising to $1.79 per share.

Mr Flannagan said “the Group is back on track after the negative impact of the Christchurch earthquakes and challenging economic conditions which combined to create a difficult operating environment.”

ENDS

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