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 0.7234 0.0057 0.79%
AUD 0.9374 0.0047 0.50%
EUR 0.6838 0.0033 0.48%
GBP 0.5762 -0.0002 -0.03%
HKD 5.6124 0.0421 0.76%
JPY 81.5520 0.1310 0.16%

Commods

Commodity Price Change Time
Gold Index 1251.4 11.930 2017-02-23T00:
Oil Brent 56.8 0.750 2017-02-23T00:
Oil Nymex 54.5 0.860 2017-02-23T00:
Silver Index 18.1 0.170 2017-02-23T00:

Indices

Symbol Open High Last %
NZX 50 7090.4 7099.6 7089.5 -0.43%
NASDAQ 5866.8 5867.0 5860.6 -0.43%
DAX 11994.1 12016.0 11998.6 -0.42%
DJI 20817.2 20840.7 20775.6 0.17%
FTSE 7302.2 7310.1 7302.2 -0.42%
HKSE 24115.6 24121.9 24114.9 -0.38%
NI225 19232.1 19381.1 19371.5 -0.16%
ASX 5784.7 5784.7 5784.7 -0.77%