Life insurer Tower Australia Group Ltd
(ASX:TAL) profit for the year has dropped 32% to $46.4 million due principally to investment market impacts and higher amortisation charge.
The company says underlying profit rose 10% to $74.5 million compared to $67.9 million the year before.
Tower says underlying profit is a better indicator of the company’s performance as it excludes non-cash, accounting-based items and adjusts investment income to reflect normal long-term market returns.
Tower declared a final dividend of 5.25 cents a share compared to 4.5 cents a year ago.
CEO Jim Minto says continued growth in both the life market and the Tower Australia business reflects the confidence of consumers in life insurance to help them meet their personal risks.
Mr Minto says the life industry remains highly attractive with independent market projections for strong growth to continue for the foreseeable future.
Tower Australia’s profits have ‘see-sawed’ over the last four years.
