New Zealand insurer Tower’s net profit fell 32% to $NZ23.6 million ($21.71 million) in the year to September 30, reflecting abnormals and the sale of businesses.

“Tower is now a focused general insurer after divesting its health, life and investments businesses,” the company said.

Tower, which holds a fourth-ranked 4.6% share of the New Zealand general insurance market, sold its remaining life insurance business to Foundation Life in August for $NZ36 million ($33.12 million), following a multi-year corporate restructure.

Large-claim weather events such as Cyclone Evan in the Pacific cost $NZ14.4 million ($13.24 million), up from $NZ9.6 million ($8.83 million) the previous year. 

Gross written premium was $NZ297.6 million ($273.8 million), up 6.6%, and the combined operating ratio deteriorated to 90% from 88.4%.

Underlying earnings from Tower’s general insurance business, which excludes the impact of the Canterbury earthquakes and the sale of its Australian business, grew 32% to $NZ25.1 million ($23.09 million).

“We are pleased with the improvement in our underlying general insurance,” CEO David Hancock said. “We are exploring opportunities to further expand our presence in the Pacific, which represents exciting growth opportunities aligned to core competencies.”

Mr Hancock says growth in general insurance is encouraging given “significant” adverse weather events continued to affect claims in the industry.

Tower Life net profit, reflecting partial earnings due to its sale, was $NZ5.7 million ($5.24 million) for the year, compared with $NZ12 million ($11.03 million) the previous year.