Tower Ltd. (TWR), New Zealand's third- biggest fund manager for individuals, said first-half operating profit rose 44 percent on increased health insurance income.
Earnings rose to NZ$15.7 million ($11.5 million), or 8.3 cents a share, in the six months ended March 31, from NZ$11.4 million, or 5.8 cents, a year earlier. Net income soared to NZ$214.5 million after a one-time gain from separating Tower Australia Group Ltd., the Auckland-based company said today.
Operating profit from health insurance for individuals jumped 29 percent to NZ$3.1 million as Tower increased prices.
Chief Executive Officer Robert Flannagan spun off Tower's Australian unit during the half into a new company called Tower Australia Group Ltd., earning a NZ$199 million one-time profit.
Shares of Tower rose 1 cent to NZ$2.34 at the close of trade in Wellington. The stock has fallen 11 percent in the past year, the fourth-worst performer in the 14-member MSCI New Zealand Small Cap Index.
Tower won't pay a first-half dividend.
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