Tower NZ has seen its after-tax profit for the half year ending March 2011 fall 54.1% to $NZ12.7 million ($9.7 million).

Revenue for the last six-month period was down 10.2% to $NZ259.4 million ($198.2 million).

The company’s results suffered from the impact of the Christchurch earthquake in February, which to date has cost $NZ7.5 million ($5.7 million), and the revision to valuing life insurance policies.

Excluding Christchurch costs, Tower reported an after-tax profit for the six months of $NZ26.2 million ($20 million) which was slightly down on the corresponding period in 2009/10.

Tower NZ Chairman Tony Gibbs says the company dealt with more than $NZ350 million ($267 million) of claims stemming from the two Christchurch earthquakes.

“The pleasing financial result was achieved under challenging circumstances, but Tower has once again demonstrated the merits of maintaining a strong balance sheet and the value of proactively managing risks and investments,” he said.

“The impact of the Christchurch earthquakes aside, Tower performed well across its three businesses, while changing the business model to focus on improving and strengthening its customer service.”

General insurance saw net premiums of $NZ91.8 million ($70 million) for the six months ending March 2011, compared to $NZ90.8 million ($69.4 million) in the corresponding period in 2009/10.

Claims during this year’s six-month period were $NZ44.6 million ($34 million) compared to $NZ46 million ($35 million) last year.

The after-tax profit for general insurance in this reporting period was $NZ4.6 million ($3.5 million) compared to $NZ11.9 million ($9 million) in the six months ending March 2010.

Christchurch cost Tower $5.4 million ($4.1 million) in general insurance claims and increased reinsurance charges.

The company’s life insurance business reported net premiums of $NZ34 million ($26 million) for the six months ending March compared to $NZ31.7 million ($24.2 million) in the 2010 corresponding period.

Life claims were up from $NZ32.2 million ($24.6 million) in 2010 to $42.8 million ($37.7 million) in the six months ending March 2011.

The higher claims result in the business resulted in a reduced after-tax profit for this six months of $2.3 million ($1.7 million) compared to $10.6 million ($8 million) in the same 2010 period.

Christchurch earthquake-related life insurance claims cost Tower $NZ2.1 million ($1.6 million).