27 May 2014

Tower first-half profit down 70 percent

12:16 pm on 27 May 2014

First-half profit at Tower fell more than 70 percent, reflecting one-off gains from selling its life and health businesses in the previous first-half.

Auckland CBD at night.

Photo: PHOTO NZ (file)

The remaining general insurance business more than doubled its contribution despite claims payments for adverse weather events, such as floods in the South Island and the impact of Cyclone Lusi.

Those events cost the company $4.8 million before tax compared with claims of $3.3 million in the same six months a year earlier.

Net profit for the six months ended March fell to $13.8 million while profit from the general insurance business rose to more than $13.1 million from $5.9 million in the same six months a year earlier.

Chief executive David Hancock said Tower has been focusing on refreshing its general insurance strategy and improving customers' experience as well as on producing strong returns for shareholders.