Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tower FY profit jumps 67%, to return $120M to shareholders

Tower FY profit jumps 67%, to return $120M to shareholders; shares jump

Nov. 29 (BusinessDesk) - Tower, the insurer that’s 34 percent owned by Guinness Peat Group, posted a 67 percent jump in full-year profit and said it will return $120 million to shareholders after the sale of medical insurance business. The shares climbed 4.2 percent as the market opened.

Profit rose to $55.8 million in the 12 months ended Sept. 30, from $33.4 million a year earlier, the Auckland-based company said in a statement. Revenue from ordinary activities rose 23 percent to $483 million.

Profit is within the guidance of $51 million to $56 million given by managing director Rob Flannagan on Nov. 2 when he announced the sales of Tower Medical Insurance to ASX-listed nib holdings for about $102 million. Profit tumbled in the previous year on costs of the Christchurch earthquakes and reduced revenue from investments.

“The result reflects improved performance across all business units, compared with the same period last year,” Flannagan said. “The group is recovering well from the Canterbury earthquakes.”

Tower will pay a final dividend of 6 cents a share, bringing payments for the year to 11 cents, up from a total of 6 cents last year. The shares rose 8 cents to $1.98 and have gained 25 percent this year. The stock is rated a ‘hold’ based on a Reuters poll of three analysts, with a median price target of $1.955.

The capital return means Guinness Peat, which is selling down its portfolio of assets, will get some $40.8 million. GPG shares rose 0.9 percent to 59 cents and are little changed this year.

Profit in the latest year includes a $9 million gain from the discount rate used when valuing life risk policy liabilities.

Total net premium revenue rose to $272 million from $235 million, led by a 15 percent increase in general insurance premiums to $238.9 million and a 5.9 percent increase in life premiums to $94.2 million.

Investment revenue surged 86 percent to $118.9 million, driven by a gain from equity securities and ‘other’ which includes derivative financial assets and liabilities. Property and fixed income both record declines.

Revenue from investment and management fees fell to $31.4 million from $33.8 million.

The $120 million capital return will use the sale proceeds and existing surplus capital and is likely to be via a scheme of arrangement, the company said today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news