Tower still profitable despite earthquake expense

Tower says a lower net profit at $33.4 million is “satisfactory” in a year the country suffered major earthquakes.

The listed insurer and financial services group lost $23.6 million as a result of the earthquakes in Christchurch this year.

Stripping out that amount, and a $2.4 million gain from better discount rates under new accounting standards, a profit of $54.6 million was achieved -- $3.7 million or 6% lower than the year to September last year.

The biggest proportion of that, at $21.2 million, was earned within the life insurance division.

Group managing director Rob Flannagan said the Christchurch earthquakes and the global financial crisis created a difficult operating environment during the year.

Earthquake-related claims of more than $450 million were being processed by the insurer and were to be met during the normal course of business.

Tower, 35% owned by Guinness Peat Group, will pay a final dividend of 2 cents per share on February 1, bringing the payout for the full-year to 6 cents.

Shares in Tower are trading down 4c or 2.7% at $1.43. 

Subsidiary Tower Capital made a net profit of $404,000, down 6.5% for the year, on revenue of $8.2 million.

This article is tagged with the following keywords. Find out more about My Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Who said that natural dissenters aren't profitable?
<url>http://mercuryweb.pl</url>

Reply
Share

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7878 -0.0004 -0.05%
AUD 0.9091 0.0005 0.06%
EUR 0.6356 -0.0003 -0.05%
GBP 0.5032 0.0001 0.02%
HKD 6.1123 -0.0013 -0.02%
JPY 92.8410 0.0020 0.00%

Commods

Commodity Price Change Time
Gold Index 1201.1 7.690 2014-11-21T00:
Oil Brent 78.6 -0.120 2014-11-21T00:
Oil Nymex 76.5 0.710 2014-11-21T00:
Silver Index 16.4 0.260 2014-11-21T00:

Indices

Symbol Open High Last %
NZX 50 5526.9 5526.9 5526.9 -0.56%
NASDAQ 4751.0 4751.6 4701.9 0.24%
DAX 9521.2 9736.1 9484.0 2.62%
DJI 17721.0 17894.8 17719.0 0.51%
FTSE 6678.9 6773.1 6678.9 1.08%
HKSE 23353.7 23508.0 23349.6 0.37%
NI225 17285.7 17381.6 17300.9 0.33%