Letter from Jim Minto

TOWER Australia has seen sound growth in business and is well placed competitively to continue growing, supported by its focus and investment in core life insurance capabilities and technology.

Dear Shareholder

Welcome to the second shareholder newsletter for TOWER Australia Group Limited (ASX: TAL). TOWER Australia’s financial results and business achievements since becoming a separately listed company on the Australian Securities Exchange almost two years ago have been very pleasing. The results reinforce the competitive position and focus of the business on the strongly growing Australian life insurance market.

The half year to 31 March 2008 reflected a continued improvement in financial performance. TOWER Australia reported a net profit after tax of $30.9 million, up 81% on the $17.1 million profit for the corresponding period last year. The underlying profit increased 19% to $33.9 million for the six month period compared to $28.5 million for the same period last year.

When TOWER Australia announced its intention to focus strongly on the life insurance market over five years ago it was criticised by some market commentators. At that time life insurance was seen as an old fashioned industry which had limited growth potential. TOWER Australia however saw the potential for growth in a market which was largely neglected as traditional life insurance companies became more investment oriented.

In the tighter economic times today many people are recognising that life insurance is very important and provides financial protection and assurance. TOWER Australia has seen sound growth in business and is well placed competitively to continue growing, supported by its focus and investment in core life insurance capabilities and technology.

The recent launch of the TOWER Accelerate solution is providing much faster policy underwriting for advisers and customers. It has set a benchmark for the industry. In the Group Life insurance sector, TOWER Australia is also investing in building new technology capability. This differentiation and very strong commitment to service lays the foundation for the success of TOWER Australia’s business strategy.

If we can continue to deliver the right products and services to our customers at all levels, then we will be successful. This will require ongoing investment in new technologies to simplify our day to day processes and keep ahead of our competitors. It will also require investing in our people to equip them with the skills and tools needed to understand and service our customers.

For the 12 months to 30 June 2008 TOWER Australia has been the top financial company on ASX and the 26th best out of the top 200 ASX companies measured by share price performance. Our aim is to continue to deliver value to our shareholders by remaining a focused, innovative and people driven company.

Thank you for your support of TOWER Australia.

Jim Minto

Managing Director

 

 

 

 

 

 

 

 

 

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