NZ diversified insurer Tower Limited has defied difficult financial conditions to lift net profit 24% in its full year ending September 30, compared with 12 months earlier.

The $NZ50.1 million ($39.3 million) net profit was achieved largely on the back of growth in its three businesses – health and life, general insurance and investments.

In life insurance, a strong recovery in investment income helped see after-tax profit up 5%, to $NZ23.9 million ($18.8 million). Net premiums were up 4% at $NZ61.5 million ($48.3 million).

The general insurance underwriting result was up 36% at $NZ14.1 million ($11 million) on 3% growth in net premiums at $NZ195 million ($153 million). After-tax profit in this division improved 17% to $NZ17.3 million ($13.6 million) while investment income edged up 2%, at $NZ11.2 million ($8.8 million).

Tower NZ says its direct business in NZ continues to experience strong premium growth, while Pacific premiums are stable in local currencies but impacted by exchange rate fluctuations.

Turbulent equities investments squeezed the group by $NZ10 million ($7.9 million) but this was vastly better than the previous year’s $NZ57.53 million ($45.2 million) loss.

“Market conditions will continue to remain challenging over the next six to 12 months,” the insurer said.