Tower Insurance has returned to profit on the back of fewer weather-related claims and higher premium income.
Tower insurance's net profit in the year to September was $16.6 million, compared with a loss of $6.7m the year before. Photo: 123rf
Its net profit in the year to September was $16.6 million, from a loss of $6.7m the year before, which was caused by paying a large reinsurance settlement.
Tower Insurance chief executive Richard Harding said the result proved its transformation strategy was paying off.
"Sales through our online channels keep on increasing and the recent launch of our new IT platform means we can push harder into the digital space and realise our ambition to be a digital challenger brand.
"New Zealand's insurance customers have been conditioned to accept the status quo, but we're challenging this and I'm pleased that customers are noticing and our business is growing," Mr Harding said.
Revenue rose 7 percent to $358.3m, as premium income increased in New Zealand and the Pacific Islands.
The cost of claims fell, including Canterbury earthquake claims, although it still has 109 earthquake claims totalling $46.6m on its books.
Tower is buying the Youi New Zealand insurance business for $13m to boost its market share.
It has forecast a net profit of between $27m and $30m this financial year.