In its maiden results announcement since separating from Tower’s New Zealand operation, Tower Australia has reported a net profit of $17.1 million for the half-year ending March 31, 2007.
Tower Australia managing director Jim Minto said: “The separation has gone really well, as has the Prefsure integration, and we are announcing that the directors are proposing to pay a dividend for the full year, which will be formally considered at the end of the year.”
Operating earnings for the six months came in at $21.6 million, which represented a 16 per cent increase on the equivalent figure for the corresponding period last year.
On the investment side of the business, total funds under administration for the half-year grew by 6.8 per cent, finishing the period at $3.6 billion. This included net fund inflows of $151.7 million for Tower Australia’s modern platform Beacon.
In regard to moving forward, Minto said it was still the company’s aim to outgrow the market by a rate of 10 per cent.
“We believe we’re well positioned with good diversified channels underpinning the business, which helps insulate us from market movements and intense price competition. This is a good industry and Australians are getting access to more and more cover,” he said.
