Tower medical insurance purchase weighs on NIB earnings, eyed for future growth

Tue, 27 Aug 2013

By Tina Morrison Aug 27 (BusinessDesk) – The purchase of Tower’s New Zealand medical insurance unit weighed on health insurer NIB in 2013, however Australia’s only listed insurer expects the purchase to help grow future earnings. The former Tower business, now known as NIB New Zealand, contributed $8 million, or 8.7 percent to the Newcastle, New South Wales-based parent’s pre-tax net underwriting profit in the year ended June 30, the company said. The group’s full-year profit fell to A$67.2 million from A$67.6 million the year earlier becaus...

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