Tower forecasts profit jump

Insurer and financial services group Tower today forecast a huge profit jump for the year ended September.

Tower forecast a net profit of $40-43 million for the period - up 63-75 per cent on the previous year. The forecasted profit is before revaluations and goodwill amortisation, and excludes Australian Wealth Management (AWM) which was spun off in February for A$130 million ($140 million).

Tower said today operating earnings from continuing businesses are expected to be in the range of $30.5-$32.5 million, up 40-50 per cent on the previous year.

Tower said its operating earnings for its New Zealand risk businesses were likely to be about $8 million lower than the first half, when it reported an operating profit of $9.9 million.

Operating earnings for the second half in Australia are also expected to be marginally below its first-half returns, when it reported operating profits of $9.6 million.

Tower is due to announce its full-year result on November 24.

Shares in the company were down 1c at $2.09 this morning, having traded between $1.73 and $2.50 over the past 12 months.

- NZPA