Half year profit for Tower jumped by a third, due to a one-off accounting gain.
The insurer and fund manager made $26.6 million in the six months to March, an increase of 33% on the same period a year ago.
Excluding an unrealised $5 million gain, Tower's underlying profit rose 5% to $20.4 million.
A fall in income in its health and life insurance arm was offset by a strong rise in its general insurance business which was due to higher premiums and fewer claims.
Managing director Rob Flannagan says Tower is aggressively cutting costs, particularly from its investment arm to counter lower returns and more people withdrawing funds.
Earlier this year, Tower raised $82 million to pay down debt and Mr Flannagan says that leaves the business in good shape.
Tower Australia on Thursday reported a 12% drop in its first-half profits. The company posted a net $A27.1 million profit in the six months to March.
