Tower Australia has reported net profit after tax of $40.7 million for the 12 months to September 30, 2007, a 29 per cent jump on the corresponding period.
Tower Australia, which became independent of Tower Limited in November 2006, reported an increase in its underlying profit of 29 per cent to $54 million, compared to 2005/06.
The results come as Tower Australia faces rumours of a possible sale, a suggestion Tower Australia managing director Jim Minto has shrugged off.
“Since we first listed in 1999 there have been those sorts of rumours and I’m sure that will continue to be the case as we continue to be successful,” he said.
“When you’re a listed company your for sale because anyone can buy your shares.”
Minto said the company planned to build on the success through improvements and innovations.
He said it is in the process of rolling out its electronic application, Tower Accelerate, to improve advisers’ risk-writing efficiency.
Tower Australia has also been rebuilding its adviser network, Pivotal.
However, Minto said it was not advertising the fact because it was “quietly building capability first”.
Pivotal aims to add investment advisers to its team of risk insurance specialists.
According to the IFA Dealer Group Survey, it had 54 advisers at June 30, 2007.
Tower Australia is the nation’s fourth largest provider in terms of total life insurance premiums behind CommInsure, National Australia Bank/MLC and ING Australia.
