by Susan Edmunds
At that time, TOWER bonds worth $81.8 million will also be repaid.
In total, the sale of its health insurance, investment and life insurance businesses will have released capital of $370 million to its shareholders - $120 million has already been distributed.
TOWER reported a $44.2 million net profit after tax for the half year ended March 31.
Managing director Rob Flannagan said it was a good result as the company repositioned itself as purely a general insurance provider
“Our general insurance business delivered a solid performance for the period and after all capital returns is exceedingly well capitalised, having more than $127 million in capital above minimum solvency requirements. TOWER is now strongly positioned to concentrate on being a simpler, dynamic and more agile business in a sector that is poised for growth,” he said.
With TOWER’s solid underlying performance and strong capital position, the group's board has announced an unimputed dividend of 5 cents per share for the six months to 31 March. In addition, TOWER will adopt a dividend policy payout ratio of 90%-100% of NPAT for the future.
Because the return of $114.5 million capital is due to occur after the life business is sold, TOWER’s dividend reinvestment plan will not operate for the interim dividend.
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