Tower Group’s year of asset sales led to a 38% fall in profit to $NZ34.2 million ($30.6 million) in the year to September 30, although revenue grew.

The company reported an 8% rise in revenue to $NZ282 million ($252 million), having restated the previous year’s revenue figure to reflect the sale of its life and health businesses.

Business sales generated $NZ370 million ($331 million).

Tower’s remaining general insurance business made a $NZ19 million ($17 million) pre-tax profit.

While it was still owned, the life insurance operation $NZ12 million ($10.7 million) and the health business contributed $NZ900,000 ($806,580).

Gross earned general insurance premium was $NZ267 million ($239 million), up from $NZ239 million ($214 million).

Large claim events grew to $NZ9.6 million ($8.6 million) from $NZ1.3 million ($1.1 million) due to Cyclone Evan.

Tower also faced $NZ15.2 million ($13.6 million) of claims from the Canterbury earthquakes, up from $NZ13.6 million ($12.1 million), and a $NZ7.1 million ($6.37 million) loss from the sale of Australian workers’ compensation liabilities.

These losses moved the insurer’s after-tax result to a $NZ3.3 million ($2.9 million) loss, compared with a $NZ13.2 million ($11.8 million) profit the previous year.

Tower CEO David Hancock says the company is focused on improving capital structure, refining and implementing new strategies and introducing organisational change.

Future areas of focus include customer retention, product bundling and brand positioning.

“The executive team and I have prepared the way for our future growth and we are now starting to execute our refreshed strategy,” he said.