Tower records profit in difficult market conditions
Life insurer Tower Australia has posted a 69% increase in net reported profit to $68.7 million in its full-year financial results to 30 September.
The insurer has also reported an increase in underlying profit of 14% to $67.9 million and a dividend boost of 13%.
MD Jim Minto told insuranceNEWS.com.au the company, markets, analysts and institutional investors are very pleased with the results.
“It’s good to produce a strong result in a market that is not used to seeing strong results, and to be able to boost our dividend as well,” Mr Minto said.
He says while the deal in October with major Japanese insurer Dai-ichi Mutual Life to acquire 29.7% of Tower did consume some management time, it had no impact at all on results and he is looking forward to building on their partnership with them.
Mr Minto says that despite the difficult financial environment, Tower is quite optimistic about its outlook for the life market.
“We haven’t seen too much unemployment or deterioration in claims,” he said. “We feel competitively strong – stronger than we have ever been in my time at the company (since 2002). The market has trebled in 10 years and is predicted to continue to grow.”
While underinsurance and non-insurance in the life market remains high, Mr Minto says Tower has been driving a lot of talk and awareness about the issue and consumers are now responding to that.
The insurer has also reported an increase in underlying profit of 14% to $67.9 million and a dividend boost of 13%.
MD Jim Minto told insuranceNEWS.com.au the company, markets, analysts and institutional investors are very pleased with the results.
“It’s good to produce a strong result in a market that is not used to seeing strong results, and to be able to boost our dividend as well,” Mr Minto said.
He says while the deal in October with major Japanese insurer Dai-ichi Mutual Life to acquire 29.7% of Tower did consume some management time, it had no impact at all on results and he is looking forward to building on their partnership with them.
Mr Minto says that despite the difficult financial environment, Tower is quite optimistic about its outlook for the life market.
“We haven’t seen too much unemployment or deterioration in claims,” he said. “We feel competitively strong – stronger than we have ever been in my time at the company (since 2002). The market has trebled in 10 years and is predicted to continue to grow.”
While underinsurance and non-insurance in the life market remains high, Mr Minto says Tower has been driving a lot of talk and awareness about the issue and consumers are now responding to that.