Tower Australia profit falls by 12%
Tower Australia has reported a 12% fall in first-half profit but the company is upbeat about future prospects due to a growing market for life insurance.
The company reported net profit of $27.1 million for the six months to March 31 against $30.9 million earned in the same period last year.
A 19% fall in investment income and a 22% rise in claims suppressed overall profit.
The group’s underlying profit measure increased 13% to $38.2 million during the period, while premiums edged 2% forward to $710 million.
MD Jim Minto pointed to new individual life business growth of 24% as evidence of strong core operating performance by Tower, which is Australia’s fourth-largest life insurer.
“Consumers are seeking greater comfort and financial protection through life insurance and this is being reflected in increased sales,” he said.
The company reported net profit of $27.1 million for the six months to March 31 against $30.9 million earned in the same period last year.
A 19% fall in investment income and a 22% rise in claims suppressed overall profit.
The group’s underlying profit measure increased 13% to $38.2 million during the period, while premiums edged 2% forward to $710 million.
MD Jim Minto pointed to new individual life business growth of 24% as evidence of strong core operating performance by Tower, which is Australia’s fourth-largest life insurer.
“Consumers are seeking greater comfort and financial protection through life insurance and this is being reflected in increased sales,” he said.