Sharechat Logo

Tower profit falls, hit by Christchurch earthquake

Friday 27th May 2011

Text too small?

Half year net profit at insurer and fund manager Tower fell 54% to $12.8 million, with the result including the impact of earthquakes in Christchurch and a loss due to changes in the global investment market.

Excluding the earthquake costs and discount rate movement, the company today said its after tax profit for the six months to March 31 were $26.2 million, compared to $27.7 million a year earlier.

A loss of $7.5 million was attributed to the earthquakes, while a loss of $5.7 million was a result of changes in the global investment market which in turn affected the discount rate applied under accounting standards in valuing individual life risk policy liabilities.

Half year revenue fell 10.2% from a year earlier to $259.4 million.

Group managing director Rob Flannagan said Tower had provided for more than $350 million in claims for the two major Christchurch earthquakes.

An unchanged interim dividend of 4c per share is to be paid.

Tower chairman Tony Gibbs said the impact of the earthquakes aside, the company performed well across its three businesses, while changing the business model to focus on improving and strengthening its customer service.

 

NZPA



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

New Zealand Rural Land Company Limited (NZX: NZL) Agreement to acquire large scale dairy asset portfolio
EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam
22nd October 2021 Morning Report
Pictor ready to roll out game-changing COVID antibody test in New Zealand
Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto