27 Nov 2009

Tower seeks growth opportunities

11:07 am on 27 November 2009

Financial services group Tower says wants to double the size of its business through organic growth and acquisitions and is eyeing up opportunities in the market.

The fund manager and health and life insurer posted an overall 22% rise in profit to just over $50 million in the year ending September.

The group's revenue rose nearly 7%, to $517 million.

Tower's managing director, Rob Flannagan, says the board is under pressure to get a return on the $81 million raised from investors earlier this year.

With about $150 million cash in the bank, the company is keeping an eye out for acquisitions.

"We're not sitting idle," he says. "In all our businesses we would like to be twice the size we are now ... just simply because it gives us better economies of scale."

Mr Flannagan says the company will be sticking to its core business.

Tower Australia

Across the Tasman, specialist life insurer Tower Australia's annual profit fell by nearly a third.

The company, which is a separate from Tower in New Zealand, made a net profit of nearly $A46.5m for the year ending September.

Tower says the fall is largely due to the downturn in the investment markets.

The group increased its underlying profit by 10% to $74.5m, which Chairman Robert Thomas says allows the company to increase its annual dividend to 5.25c.