Tower reports changes help bottom line
Tower Australia Group has moved to what it describes as a more appropriate profit-reporting basis and will no longer use claims as the profit carrier for its individual life insurance business.
The company has told the Australian Securities Exchange that, with effect from October 1, 2007, it will be changing the basis for its individual life insurance profit reporting from claims to the more appropriate premiums basis.
In an explanation for the change, it said that premiums represented a more appropriate regime because it required simpler assumptions, was inherently more transparent and was consistent with the methodologies of other insurers such as AMP, ING and MLC.
The announcement said the change in profit reporting was expected to result in an increase in Tower Australia’s planned profit, leading to an uplift in underlying profit and net profit after tax of approximately $6 million in the 2008 financial year.
AUTHOR
Mike Taylor
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
