A.M. Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a-" of TOWER Insurance Ltd. (TIL) (New Zealand). Concurrently, A.M. Best has removed from under review with negative implications and affirmed the Long-Term ICR of "bbb-" of TIL's ultimate parent, TOWER Ltd. (TL) (New Zealand). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect TIL's balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
On Aug. 16, 2017, A.M. Best placed the ratings of TIL and TL under review with negative implications due to the group's relatively weak balance sheet strength for the rating levels. The major concern at that time was that the group's balance sheet was very susceptible to the reserve risks in relation to the open claims for the Canterbury earthquakes and the dispute over an adverse development cover with Peak Re related to the February 2011 earthquake.
