Tower reports strong half-year profit growth

Tower has reported a strong profit for the first half of the financial year.

The insurance company, which operates in New Zealand, recorded an underlying net profit after tax of $61.7 million, compared to $36.6m in the same period last year.

The reported profit was $49.7m, up from $36m.

Tower attributed the positive results to improvements in claims performance, growth in gross written premium, and a better management expense ratio.

The company said the reported profit included provisions for customer remediation costs and an increase in Canterbury earthquake cost estimates.

Tower's gross written premium reached $297m, a 4% increase from the previous year.

The company had 312,000 customer, up from 309,000.

Tower's combined operating ratio was 69.7%, compared to 80.2% in the prior year.

It declared a fully imputed interim dividend of 8 cents per share.