TOWER’s Half Year Profit up 55%

Hello everyone,

This morning TOWER Limited released its half-year results for the six months to the end of March.  I am pleased to tell you the Trans-Tasman Group has achieved a growth in profit after tax of 55% to NZ$32.5 million (A$27.9 million).

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TOWER Australia continued to be a major contributor to the Group result with TOWER Risk and TOWER Investments generating a net profit after tax of A$18.46 million.

TOWER’s acquisition of PrefSure, whilst announced in January, was not completed by 31 March so its profit result was not included in the TOWER figures. However, PrefSure continues to grow its market position and is a valuable part of the TOWER Group.

The highlights for TOWER in Australia during the period were:

• Continued strong growth in the life sector with premiums up by 21%
• A continued improvement in lapse rates; and
• A further strengthening of the capital solvency position putting it well ahead of minimum statutory requirements.

TOWER in Australia, with PrefSure, is now further strengthened in the risk insurance sectors with TOWER Retail continuing to focus on building partnerships with its independent advisers. TOWER Group and Alliances will be seeking to further consolidate its position in the Master Trust sector and grow sales by working with its business partners. TOWER Investments provides specialist investment options in a simple-super environment.

We at TOWER in Australia want to thank you for your support over the past 12 months and look forward to working with you throughout the remainder of 2006.

Disclaimer
This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.

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TOWER Australia Ltd
A.B.N. 70 050 109 450
AFSL Number 237848