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.


1 · Got a question about this story? Leave it in Comments & Questions below.

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

1 Comment & Question

Commenter icon key: Subscriber Verified

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

Reply
Share
  • 0
  • 0

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 0.6654 0.0037 0.56%
AUD 0.9407 0.0059 0.63%
EUR 0.5902 -0.0006 -0.10%
GBP 0.4612 0.0027 0.59%
HKD 5.1854 0.0304 0.59%
JPY 76.6410 0.1710 0.22%

Commods

Commodity Price Change Time
Gold Index 1188.8 15.820 2016-02-08T00:
Oil Brent 33.6 -0.540 2016-02-08T00:
Oil Nymex 31.6 -1.110 2016-02-08T00:
Silver Index 15.4 0.650 2016-02-08T00:

Indices

Symbol Open High Last %
NZX 50 6153.8 6153.8 6153.8 -1.34%
NASDAQ 4224.9 4329.6 4283.8 -0.42%
DAX 8980.7 9041.9 8979.4 -1.56%
DJI 16005.4 16057.3 16027.0 -0.52%
FTSE 5689.4 5739.2 5689.4 -1.20%
HKSE 19287.4 19397.9 19183.1 0.55%
NI225 16666.8 16668.7 17004.3 -5.40%