The dividend of A4.5c was up 13% on the dividend paid last year.
Managing director Jim Minto, formerly of Dunedin, said from Sydney he was happy Tower had produced a solid result in a market that had produced some shocking ones.
"The result came from a decision made five years ago to focus on pure life insurance. That is a strategy that has served us well. This is good old fashion stuff. We innovate and invest to be successful in the future. That is working for us."
Tower was regarded as a defensive stock in times of economic turmoil, he said.
A "pure life company" was based on premiums, minus claims, minus expenses which equalled profit.
In tough times, people were more likely to buy life insurance, so premiums were growing and Tower was managing its claims well.
The two types of claims were death and living insurance.
People were living longer, which reduced claims, and Tower had a programme to help people back into work, which reduced the living insurance claims.
The post-balance date acquisition of InsuranceLine had helped underpin the company's strategy, Mr Minto said.
Only about 20% of Australians had access to financial advice for things like life insurance. InsuranceLine sold Tower products over television through two-minute infomercials.
"People who don't have enough cover can buy straight off the TV."
Tower management recognised the need to remain vigilant and to ensure the company remained flexible to changing market and global trends.
"An example of our commitment to innovation in life insurance has been the success of the Accelerate electronic underwriting product and process, which was launched in 2008 after being tested the previous year."
Accelerate provided life insurance using technology to increase the productivity of financial advisers and reduce the waiting time for the consumer to receive protection.
Asked how he viewed the future for Tower as governments around the world battled the financial crisis, Mr Minto was optimistic.
"Australia still has very significant levels of under insurance and we endorse research views that the life market is likely to treble in size through to 2017, having already trebled in the past 10 years.
"We will be monitoring market conditions closely and will be very vigilant with plans to respond quickly to changing global and market conditions."
