trending Market Intelligence /marketintelligence/en/news-insights/trending/J-5kWKF2fHddew1E8tjREg2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

A.M. Best Affirms Ratings of TOWER Limited and TOWER Insurance Limited

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Part Two IFRS 9 Blog Series: The Need to Upgrade Analytical Tools

2018 US Property Casualty Insurance Market Report

Fintech

Fintech Funding Flows To Insurtech In February


A.M. Best Affirms Ratings of TOWER Limited and TOWER Insurance Limited

A.M. Best has affirmed the financial strength rating of A-(Excellent) and the issuer credit rating (ICR) of "a-" of (TIL). A.M.Best also has affirmed the ICR of "bbb-" of the ultimate parent, (TL). The outlook for each rating remains negative. Both companies aredomiciled in New Zealand.

The ratings reflect TIL's adequate risk-adjustedcapitalization, which results from the company's moderate underwritingleverage, prudent reinsurance arrangement and conservative investments. Inaddition, over the past four accident years, the company continues to reportfavorable underwriting results, with combined ratios consistently below 95%.

A major offsetting factor in TIL's rating assessment is thevolatility in its historical earnings, stemming largely from prior-year reserveadjustments for unsettled Canterbury earthquake claims. Another offsettingfactor is the high dividend payout ratio, which has constrained growth in itsabsolute and risk-adjusted capitalization.