NZ's Tower half year profit rises nearly a third

WELLINGTON, May 29 (Reuters) - Mid-sized New Zealand insurer and fund manager Tower Ltd. (TWR.NZ) on Friday reported a 32 percent rise in half year net profit boosted by a one-off accounting gain.

The company said net profit after tax for the six months to March 31 was NZ$26.6 million ($16.5 million) compared with NZ$19.7 million in the same period last year.

The result included a non-cash item of NZ$5.1 million of movements in its discount rate, and it said group underlying profit, excluding the discount rate gain, increased around 5 percent to NZ$20.4 million.

It said revenue from its health and life insurance was down on a year ago, but there was a strong rise in its general insurance business.

Shares in Tower closed on Tghursday at NZ$1.57.

The company did not declare an interim dividend.

Tower is the third-largest retail fund manager in New Zealand and second-largest health insurer.

Earlier this year the company raised NZ$82 million through an offer of senior bonds, with the funds used to pay down debt. ($1=NZ$1.61)