Insurance company Tower Australia Group Ltd
(ASX:TAL) says the year ahead will be interesting, as the company deals with a shifting economic and regulatory environment.
Speaking at Tower’s annual general meeting chairman Rob Thomas said the government has flagged changes to the financial advice sector which may impact the company.
An Australian Prudential Regulation Authority review of capital standards for life insurance companies is currently underway that may require the company to hold additional capital.
Mr Thomas says Tower does not believe any significant increase is needed and says the company will try to ensure that appropriate returns are priced on any additional capital required, without imposing major new costs on consumers.
In the year to 30 September 2010, Tower Australia booked a net profit of $87.4 million
