Tower NZ has reported a 16% increase in after-tax profits to $NZ58.1 million ($45.3 million) for the year ending September 30.

This compared to an after-tax profit of $NZ50.1 million ($39 million) for the previous financial year.

Net premium revenue for this financial year was down $NZ4.8 million ($3.7 million) to $383.5 million ($299 million).

Both life insurance and general insurance premiums were down for the year with life premiums at $NZ86.7 million ($67.6 million) while general insurance premiums were $NZ204.8 million ($159.6 million).

Life insurance claims rose during the year to $NZ124 million ($96.6 million) compared to $NZ94.4 million ($73.5 million) in the 2009 financial year.

Tower Group MD Rob Flannagan says the life business is “performing well in a difficult market”.

General insurance claims for the 2010 financial year were $NZ166.4 million ($129.7 million), up from $NZ146.6 million ($114.2 million) in the previous year.

He says the general insurance business is improving, with Tower NZ’s direct business continuing to grow.

“Tower remains firmly committed to getting the basics right through achieving revenue growth while reducing costs.”

 Mr Flannagan admits the growth of the company has been disappointing during the year, and the changes to taxation of insurance are also impacting future growth.

To deal with regulatory and tax changes, a strategic review of customers, staff and distributors focused on key aspects of growth acceleration during the next three to five years.

He says the aim of the company now is to leverage the combined strengths of the group and accelerate its distribution models.