The non-bank aligned life insurer did not provide any full-year guidance, but said it was well positioned for the future.
The company said it planned to pay an annual dividend after paying a dividend of 4c per share in January.
Net profit for the company spun out of New Zealand's Tower Ltd rose 81% to $A30.9 million ($NZ38 million) for the six months ended March 31.
Underlying net profit, which strips out one-off items, rose 19% to $A33.9 million ($NZ41.5 million).
Tower chief executive Jim Minto said there were market projections that the Australian life insurance market would treble to almost $A20 billion ($NZ24.5 billion) of annual premiums by 2017.
The market had already doubled in size since 2000, he said.
"The key driver for this continued and projected growth is the fact that Australians remain significantly underinsured in the areas of life and illness-related insurance," Mr Minto said.
Tower, which was Australia's fourth-biggest life insurer, was well positioned for the future, with competitive products and services, Mr Minto said.
Claims trends were improving and there was no evidence that shrinking disposable income caused by higher interest rates, food and petrol costs was affecting sales, claims or lapse rates, Tower said.
"The company policy is to pay an annual dividend and this will be considered at year end," Mr Minto said.
Mr Minto said the first-half result was pleasing and reflected a continued improvement in Tower Australia's financial performance.
In-force premium revenue in the first half rose 12% to $A694 million ($NZ849.6 million).
Tower said growth in term life premiums and new business grew at the same rate as the market.
Retail in-force premiums grew 13.7% to $A434.4 million ($NZ531.5 million) and group premiums rose 8.2% to $A259.4 million ($NZ317.4 million).
Lapse rates were at 13%, which was in Tower's long term range of 10-14%.
Tower said controllable management expenses increased by 10.9% to $A81.1 million ($NZ99.3 million) as it launched new products and distribution platforms.
Falling equity markets reduced the group's funds under management and administration by 6%.
