Just 18 months after being on the brink of a financial precipice, trans-Tasman insurer Tower has announced a healthy profit result for the six months to March 31.

Tower made a net profit after tax of $NZ55.3 million, and a 66% increase in operating earnings for the corresponding period from $NZ12.1 million to $NZ20.1 million.

The group no doubt benefitted from the sale of its Australian arms of its subsidiary Australian Wealth Management (AWM).

Increased profits were also the result of the group’s two-year recovery strategy, which involved cutting its cost base and staff, installing a new management team and revising commission structures, product definitions and underwriting processes.

Tower Chairman Olaf O’Duill says the results are particularly satisfying because they were achieved during “a period of intense management activity associated with the spin-off of AWM”.

“This result is further confirmation of the strength of Tower’s recovery and is particularly satisfying given that it was achieved during a period of intense management activity associated with the spin off of AWM,” he said. “Tower has a stronger capital base and is now well positioned to move into its next phase of growth.