Investor Guinness Peat Group (GPG) sees a bright future ahead for both its Tower and ClearView investments, according to the company’s latest annual report.

Despite Tower’s good financial performance in 2011 after the Christchurch earthquakes, GPG says the company’s share price is still depressed.

“The difficult aspect of Tower is that its share price continues to languish well below assessment of its underlying value, illustrated by the typical analysts’ ‘sum of the parts’ valuation at more than $NZ2 ($1.57) per share,” the report says.

“We concur with this assessment.”

GPG is supporting Tower’s management review of its strategies to enhance the value of the company.

“It is very important to both GPG and Tower shareholders that during 2012 there is a considerable strengthening of Tower’s market position, performance and recognition of its value,” the report says.

GPG holds a 34% stake in Tower, which was valued at £78 million ($120 million) on December 31.

GPG says ClearView is still a company at the early stages of its development into an independent life insurance and wealth management provider.

“During 2011 and into 2012 the company has made very good progress in product development, internal operational improvement and developing its distribution channels,” the report says.

“We expect to see substantial progress in 2012 and better recognition of the growing inherent value in the business.”

GPG has a 48.6% stake in Clearview that was valued at £61 million ($94 million) on December 31.