Embattled New Zealand life insurer and wealth manager Tower says its nine months into a two-year turnaround. That’s good news for weary shareholders, because Tower has also announced a record loss of $131.5 million for the year to September.

The loss was double the size of the group’s 2002 loss and worse than analysts’ expectations of $113 million, but Tower says the loss was affected by significant changes in accounting policy included in the first-half results. It wasn’t all bad news though, with the group also reporting an audited net profit for the second half of $4.8 million.

2003 has been a big year for Tower. During the year it made headlines by attracting the interest of Sir Ron Brierley’s investment company Guinness Peat Group, recapitalising through a $185 million rights issue and overhauling its entire board of directors.

Tower Chairman Olaf O’Duill says the turnaround reflects more favourable investment conditions, with the group’s total operating revenue improving by 69% to $7.41 million.

“We now have a stronger balance sheet, a highly-focused board and management, and effective strategies for building Tower’s performance in key markets on both sides of the Tasman,” he said.

MD Keith Taylor says next year Tower will concentrate on “maintaining the momentum which has begun to emerge in the second half”.

“This has been a turbulent period but we are confident that the steps that have been taken over the past year will provide a sound base for the company’s future growth.”