Tower Australia has booked an 81% increase in half-year net profit to $30.9 million, which it attributes to a growing life insurance market expected to treble by 2017.

Tower’s new business volume climbed 14% to $48 million from the same period last year as life insurance claims remained steady.

Underlying earnings increased 19% to $33.9 million.

There was a slight 2.5% dip in investment income to $11.8 million.

Tower says the Australian life insurance market could move from $6 billion to nearly $20 billion by 2017, helped along by easing underinsurance levels.

Commenting on the upcoming Federal Government tax review, Tower MD Jim Minto said it is time to overhaul “inequitable” taxes on life insurance.

Tower Australia demerged from NZ-based Tower Limited in November 2006.