New Zealand insurance company, Tower Ltd (ASX:TWR)
, reported full year loss of $21.5M for year ended 30 Sep 2016. Tower says this result was due to the impact of $14 million in IT impairments, and $25 million in additional Canterbury earthquake provisions.
Excluding those items, Tower says a more accurate gauge of the company’s performance is its underlying net profit result of $20.1 million. And Tower says it’s satisfied with the result.
The insurer is also planning to create a new, separate company (called RunOff Co) – dedicated to just to resolution of its Canterbury claims. Tower is planning to bring this proposal to its shareholders at the annual shareholder meeting in March 2017. This move would likely improve its statutory profit figures on its next balance sheet.
Finally, Tower has placed its full year dividend placed on hold to retain capital to facilitate the company structure separation.