Life insurer Tower Australia, which split from New Zealand-based Tower Limited in November 2006, has posted a net profit of A$17.1 million for the first six months of the fiscal year, a slightly weaker performance compared to H1 2006 which saw a net income of A$17.7 million.
Commenting on the results, the chairman of Tower Australia, Dr Keith Barton, said: The result was unfavorably affected by some investment market movements. For instance as a consequence of changes in accounting standards (AIFRS), higher bond rates required us to record losses from discount rate changes. This non-cash item had A$3 million negative impact on recorded profit.
According to the Australian Associated Press, the results are below the forecasted target earnings for 2010. Last year, the company announced a target to double the annual net profit in 2006 by 2010.
Looking forward, the company aims to continue to grow in all its business lines with key priorities in business retention and sustainable growth.