Sovereign posts solid result

The company's net cash profit after tax was up 3% to $103 million.

Sovereign chief executive Symon Brewis-Weston described the result as "solid rather than spectacular". He says it was pulled back a little because expenses were up due to software write-downs and restructuring costs.

Premium income was up from $616 million to $642 million however investment income fell slightly to $184 million, primarily on the back on the performance of the fixed interest markets.

He says that its adviser channel has performed well and that business from independent financial advisers was up 18% year-on-year. It's second biggest channel, ASB Bank, hadn't performed so well because of changes and a restructure.