Tower Limited (ASX:TWR)
is reporting a near $5 million loss for the half year due to costs associated with the Canterbury earthquake events. Tower had to increase provisions for the event by $22.6 million.
The loss masked a jump in underlying net profit to $17.5 million, significantly higher than last year’s result of $12.3 million. The improvement is due to higher premiums and an otherwise low claims environment.
A half year dividend of 8.5 cents has been announced, up 37 per cent on a year ago. Tower also plans a $34 million on market buy back.