NZ insurer Tower recorded a net profit of $NZ13.14 million ($12.1 million) in the half-year to March 31 ­– down more than 70% on the previous corresponding period.

However, it says extreme weather affected the latest result, while the 2012/13 half-year included abnormal profit and earnings from divested businesses.

Large claim events – including South Island floods and Cyclone Lusi in March – cost $NZ4.8 million ($4.4 million) before tax in the half-year to March 31, up from $NZ3.3 million ($3.04 million) in the previous corresponding period.

Gross written premium was $NZ139.2 million ($128.2 million), up 5%, and the combined operating ratio improved to 88.3% from 91%.

CEO David Hancock says Tower has refreshed its general insurance strategy in the past six months.

“We’re an old company with a lot of new ideas about how to deliver better to our customers.”

He says management will continue to focus on reducing costs.

Tower Life reported profit of $NZ3.7 million ($3.4 million), well above the full-year plan for $NZ2.8 million ($2.6 million) due to a “one-off earnings improvement”.

Tower continues to evaluate approaches for its life business, which has a closed book in run-off.