Australian-based insurer Tower Australia Group has reported a 12 per cent decline in net profit to $27.1 million for the six months to March 31.
However, the insurer pointed to a 13 per cent increase in underlying profit to $38.2 million for the period, with managing director Jim Minto saying the company had grown its underlying profit in each of the five half-year periods since it listed on the ASX.
The company claimed that underlying profit provided a more accurate measure of the company’s performance because it excluded non-cash, accounting-based items and adjusted investment income to reflect normal long-term market returns.
Minto said the company’s core life insurance business had performed strongly during the period and said that the company’s business through financial advisers was growing strongly from strengthened capability and increased consumer demand.
He said almost 50 per cent of sales through the adviser channel were now being completed using the company’s online Accelerate product.
Minto said that Tower’s debt and gearing levels remained and interest cover was at 12 times earnings, and that the company remained positive about the prospects for continued growth in the wider life insurance market.
