A lot of things are coming together in rush for Tower, the Australasian financial services group.
The company has already been selected to replace the Village Road Show on the S&P 500 list from September 20.
This not only spotlights Tower with financial fund managers but it means it has the market depth needed to satisfy movements of significant chunks of stock.
Earlier this year Tower reported an impressive profit turnaround for the half year to March 31.
The company produced first half earnings of $20.5 million in contrast to a loss for the previous comparable period.
The result underlined the progress being made by TOWER with its firm focus on growth in profitability and positive progress in Australia.
Other key features of Tower's half yearly performance included:
* Increased sales in the risk businesses in Australia and New Zealand
* Growth in funds under management in the Australian Wealth Management division
* Improving lapse and surrender rates
* Significantly reduced one-off and restructuring costs
* Reduced finance costs due to debt reduction
* Reduction in operating costs resulting from the consolidation of management and support services within the business divisions.
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Share price movements
Tower shares on Friday fell 3c to $1.91, pretty close to its rolling high for the year of $1.94. Low for the period was $1.01.
The Group has been one of the fastest growing financial services businesses in Australasia for more than 10 years, according to the company's website.
Through a successful policy of organic growth and strategic acquisitions and mergers, Tower has established itself as one of New Zealand's most dynamic companies.
It currently has NZ$21.2 billion in group assets under management.
Tower continues to rapidly expand its activities and build its position as a strong competitor in insurance, savings and investment, asset management and trustee services markets.
Within the past six years, Tower has also developed a strong and growing presence in the Australian market.
Today, over 70 per cent of Tower's revenues are generated from outside New Zealand.
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Background
Tower has a long operating history by New Zealand standards.
Its history is a journey from its beginnings under state ownership, then as a mutual company, into privatisation, listing on the New Zealand and Australian Stock Exchanges and dynamic operation as a private company in 1999.
The company began life as a government department in 1869 under the name of the Government Life Office, selling life insurance policies and pensions through a nation-wide distribution structure in partnership with the New Zealand Post Office.
Its purpose was to meet the personal financial security needs of New Zealanders, and its products were guaranteed by the state.
Tower's services were in keen demand from the outset, its success resulting from a blend of strong products, excellent distribution to markets, and the background presence of the government, which lent the business credibility and the customers security.
The decline of the role of government in business in New Zealand led to the next phase of Tower's development.
During the 1980s, New Zealand took the global lead in dismantling the state's participation in business.
De-regulation of state operations occurred on a major scale as government exited from a wide range of business activities.
A halfway stage between government/private enterprise was developed, called the state-owned enterprise.
Government Life continued to operate, but on that basis and without government guaranteed products and services.
In 1990, Government Life was corporatised by the New Zealand Government and re-named Tower.
It became a 'mutual' organisation owned by its 400,000 members.
Thereafter, a programme of rapid growth and development was implemented which led to the company's rapid development and market leadership in New Zealand, and its growing presence in Australia.
Demutualisation and listing on the New Zealand and Australian Stock Exchanges was achieved in September 1999.
The move completed Tower's journey.
Following 131 years in government ownership, then operation as a mutual society, the company moved into a new era as a listed company.
Tower now offers a competitive portfolio of products across the range of financial services needs, in risk insurance, savings and investment, asset management and trustee services.
The company leverages technology to generate competitive advantage in product distribution, customer services and administration expenses.
In particular, use of telecommunications technology in the sale and distribution of products is very well advanced.
Direct and internet sales are expected to grow rapidly, with half of Tower's revenue generated from these channels from 2003.
Tower operates a strategy of organic growth and strategic acquisitions and mergers.
Organic growth is driven through re-investment in business development.
Strategic growth results from well-considered - and largely internally funded - investment in key businesses, controlled growth rather than growth at any cost.
Acquisition of life insurance, fund management and trustee businesses was the basis for Tower's successful move into Australia.
Tower Insurance is also represented in the Pacific in Papua New Guinea, Fiji and the Cook Islands and the Solomon Islands.
TWR Price at posting:
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