New Zealand insurer Tower says it will seek opportunities to participate in industry consolidation.

“Industry consolidation is likely to remain a trend in New Zealand insurance,” the company says in its half-year report.

“However, with industry concentration an increased risk of new entrants remains.”

The company expects to make further progress towards settling and completing all Canterbury earthquake-related claims by the end of next year.

Growth in reinsurance costs and premiums has eased since the quakes, but Tower says compliance costs and capital requirements have increased.

Tower has about 4.6% share of the New Zealand general insurance market, based on gross written premium, ranking it fifth. In personal lines it has a 10.5% share in home cover, 10.2% in contents and 6.4% in motor.

The report confirms the previously announced half-year profit of $NZ13.14 million ($12.26 million) for the period to March 31.