Tower profits take a hit

Tower Insurance posted a drop in full-year profit after it got less than expected from the Earthquake Commission (EQC) in a settlement over Canterbury earthquake claims. The insurance company reported an after-tax profit of $12.3 million in the year ended on September 30, down from $16.8m the previous year. The latest profit included a $9.5m write-down related to the EQC claim. Tower has been focused on reducing costs, moving much of its business online and reducing staffing. In May, the company signalled plans for 108 redundancies as part of a wider effort to save $7.2m a year. In the year to September, Tower reduced its headcount to 601, from 659 last year. The company said its full-year underlying profit rose 3 per cent to $28.4m.