TOWER ISSUES PROFIT GUIDANCE THAT DISAPPOINTS

New Zealand-based insurer Tower saw its share price fall today after issuing a profit guidance that disappointed the markets. Tower said that its net post-tax profit for the year to September 30 would be between NZ$40m and NZ$43m, up between 63% and 75% on the previous year. Tower noted that it had said in May 2005 that the New Zealand risk business was “encountering a number of problems”. The company said that declines in service levels had been substantially remedied, but that the full-year figures for 2004/05 would still be adversely impacted. The company’s shares slid more than 11% on the day to close at NZ$1.86.