26 Nov 2010

Tower posts increased profit, hints at structural changes

11:40 am on 26 November 2010

Tower has reported a rise of 16% in its full year profit, driven by growth in its health and life and general insurance businesses.

But the financial services group has hinted its current structure may no longer be appropriate going forward and that the next six months will see changes.

The group reported a profit of $58.1 million in the year to the end of September - up 16% on the same period last year.

Underlying profit in Tower's Health and Life arm rose 5% to $33 million while profit for the General Insurance arm rose 27% to $21 million.

Managing director Rob Flannagan hinted at structural changes for the business, including a move away from its three separate business units.

He said the changes should take place over the next six months.

Mr Flannagan also said the board is considering further options for acquisitions after letting a takeover bid for Fidelity Life lapse.

Shares in Tower rose 5 cents to $1.96.