Life insurer Tower Australia has set its sights on becoming a force in the distribution of life products through mortgage brokers. Tower chief executive Jim Minto believes that life companies have not taken advantage of this distribution channel and that so far there is no significant player.Tower signalled its intentions in the mortgage broker market several years ago, when it took a stake in aggregator Australian Finance Group. Since then it has developed a product called Lifestyle, which was designed as a sales tool for allied brokers. Minto said Tower had trained a lot of brokers to sell life insurance products. Alliances made up 28 per cent of Tower's new business in the year ending September 30, while 35 percent of new business was through group sales (insurance sold through superannuation funds) and 37 per cent through financial planners.Tower yesterday reported underlying cash earnings of $54 million for the 2007 financial year, up 29 per cent on the previous year. Earnings per share were also up 29 per cent. Return on equity was 10.4 per cent.The big increase in earnings came from the acquisition of the group insurer Prefsure, which Tower bought during the 2005/06 financial year. The latest results reflect the first full year contribution from Prefsure. The addition of Prefsure has taken Tower to number four in the life insurance market, behind Comminsure, MLC and ING Australia. Minto said life insurance sales were strong, growing at more than 10 per cent a year and likely to continue at that rate. He said that sales through alliances such as mortgage brokers had a much higher forecast growth rate, at more than 20 per cent. This reflected the sector's untapped potential.