The demerger of Tower Insurance into separate entities in Australia and NZ has given the underwriter a one-off fillip in an otherwise flat earnings period.

Releasing its half-year earnings to March 31, Tower posted an after-tax profit of $NZ15.9 million ($14.07 million). This is up from $NZ11.4 million ($10 million) in the previous corresponding half – not taking a $NZ198.8 million ($175.9 million) demerger bonus into account.

The one-off gain included the operational results of the Australian insurer for its final two months as part of Tower before the split in November last year.

Tower’s health and life business sectors kept the company’s end up with a $NZ2.4 million ($2.12 million) profit spike to $NZ13.5 million ($11.9 million), while investments and general insurance lost ground.

Profit in the general insurance operations slid $NZ1 million ($884,000) to $NZ4.14 million ($3.66 million). Investments returned $NZ1.73 million ($1.53 million), compared with $NZ2.7 million ($2.38 million) in the first half of 2006.

Tower Group CEO Rob Flannagan says the company is making progress in re-establishing the NZ and Pacific businesses.

“We now have a committed and focused team of executives in place – all very experienced,” he said.