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NZ financial regulations should play into Tower's hands, investors told

Tuesday 9th February 2010

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Tower expects changes in regulations for the insurance and financial services industries to be advantageous for its risk insurance and wealth management business, shareholders were told at their annual meeting.

Tower has concentrated on its marketing initiatives and getting the basics right, said group managing director Rob Flannagan. Good growth has occurred across every one of Tower’s three businesses; health and life, general insurance and investments, with customer satisfaction and services levels remaining high – which in turn means retention rates are high.

“There is substantial change in the wings with the regulatory environment for insurance and financial services companies,” Flannagan said. “Over the next five years the life industry will reinvent itself as a result of the tax changes coming into effect mid 2010. The regulation for financial advisers complements our current expertise and is a core competency for Tower.”

Flannagan said Tower expects market conditions to continue to be challenging over the next six to 12 months. There are good signs the economy is improving, but New Zealand is not through the down turn yet he said.

Tower made a $50 million profit in the year ended Sept. 30, up 22%. Profit has grown from the $35m million earned in the wake of the separation of Tower Australia in December 2006.

Other highlights noted were the increased dividend, now to 9 cents a share, from 8 cents the year before and 6 cents a share two years ago. Under the company’s dividend reinvestment plan, shareholders have reinvested 47% of their dividend in Tower.

Two capital raisings were successfully undertaken during the year, said chairman Tony Gibbs. In March it issued $80 million unsecured senior bonds in order to repay bank debt. In September it raised $81 million via a rights issue that was over-subscribed by 47%. This capital allows Tower to take advantage of strategic opportunities that may arise, Gibbs said.

 

 

 

Businesswire.co.nz

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Get quotes for Tower Limited Ordinary Shares (TWR)
NZX Annoucements for TWR
6 Sep 2010 GENERAL: TWR: TOWER Limited - impact of claims relating to CHC earthquake
16 Aug 2010 OFFICE: TWR: Appointment of Officer
16 Aug 2010 SSH: TWR: SSH (Orbis Investment Management (Australia) Pty Ltd)
16 Aug 2010 SSH: TWR: SSH (Orbis Investment Management (Australia) Pty Ltd))
16 Aug 2010 SSH: TWR: SSH - (Orbis Group)
2 Aug 2010 GENERAL: TWR: AM Best Company Ratings
2 Aug 2010 OFFICE: TWR: TOWER Limited - Change of Australian Registered Office Addr
8 Jul 2010 RELINT: TWR: Disclosure of directors' interests
2 Jul 2010 ALLOT: TWR: Tower Ltd -Shares Issued under Dividend Reinvestment Plan
30 Jun 2010 INTERIM: TWR: Half Year Report 2010
28 Jun 2010 DRP: TWR: DRP strike price & AUD exchange rate
25 Jun 2010 GENERAL: TWR: Court of Appeal confirms TOWER's right to continue insuring
21 Jun 2010 WAV/RULE: TWR: Application for waiver from NZSX Listing Rule 7.11.1
28 May 2010 HALFYR: TWR: Media Release - Interim Dividend Confirms TOWER on track
28 May 2010 HALFYR: TWR: Results information pack
28 May 2010 HALFYR: TWR: Preliminary announcement for half year ended 31 March 2010
30 Mar 2010 ALLOT: TWR: Notice of allotment of shares
11 Mar 2010 ALLOT: TWR: Issue of shares under executive option plan
25 Feb 2010 ALLOT: TWR: Exercise of Options under Executive Share Plan
10 Feb 2010 DIRECTOR: TWR: Annual Meeting Results and Director Independence
9 Feb 2010 ADDRESS: TWR: TOWER AGM Address
8 Feb 2010 RELINT: TWR: Disclosure of directors' interests notices
2 Feb 2010 ALLOT: TWR: Issue of shares under Dividend Reinvestment Plan
25 Jan 2010 DRP: TWR: Issue price for DRP and exchange rate
15 Jan 2010 APPNDX7: TWR: Update re TWR tax credits for dividend
15 Jan 2010 APPNDX7: TWR: Tax Credits attaching final dividend
15 Jan 2010 RELINT: TWR: Exercise of Options
 
Tower Limited Ordinary Shares

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