Trans-Tasman life insurer Tower has recorded a 30% increase in net profit after improved business in Australia alleviated some financial burdens from its operational problems in New Zealand.

The Wellington-based company has reported an after-tax profit of $NZ55.3 million for the year to March, a $NZ35 million improvement on last year’s result after the sale of Australian Wealth Management for $NZ23 million.

The company still faces considerable challenges as it fights back from a series of massive losses.

Tower Chairman Olaf O’Duill says the group will seek to grow the businesses by focusing only on areas where they can compete effectively and profitably.

“In each of our businesses, we will target sales growth by improving relationships with our customers and strengthening our distribution channels,” he said. “New sales and business retention remain key areas of focus right across Tower. Additionally, our drive to improve both competitiveness and efficiency in NZ businesses is well under way.”

Total earnings of $NZ20.1 million were 66% better than last year’s results. New Zealand operations contributed $NZ13.1 million in profit, from $NZ11.2 million last year.

Tower Australia lifted its profit by 70% to $17.9 million after strong sales. Tower also reported it has turned around its New Zealand retail investment fund business to make a profit of $700,000.