Tower's health business in good shape

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Tower's health business has been the standout performer in the company's six-month profit announcement made today.

Thursday, May 22nd 2008, 5:54PM

Operating earnings from health for the six months to March 31 was up from $3.1 million in the corresponding period last year to $4.9 million. The increase in earning from life insurance was much smaller, increasing just $300,000 to $8.4 million.

Overall Tower Health and Life's profit after tax was up from $11.8 million to $15.1 million.

Tower managing director Rob Flannagan says that Health and Life's overall premium growth was up 8% compared to the same period last year, while there had been an "across the board improvement in lapses."

Sales of group life insurance were down significantly as businesses were more focused on issues such as KiwiSaver.

On the product front Tower Life has made enhancements to its non-medical product limits for life, trauma and permanent disability cover.

Grant Hill says the changes will decrease the number of medical requirements necessary for applications. This will lead to a smoother application process and quicker completion of new business.

The changes apply to all lump sum covers for Life 360 and Business 360 products.

Overall Tower reported a half-year after tax profit of $20.2 million. This is 28% higher than last year's result.

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