Sign In  |  Register  |  About Corte Madera  |  Contact Us

Corte Madera, CA
September 01, 2020 10:27am
7-Day Forecast | Traffic
  • Search Hotels in Corte Madera

  • ROOMS:

AM Best Affirms Credit Ratings of Tower Limited

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Tower Limited (Tower) (New Zealand). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Tower’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Tower’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which was at the very strong level at fiscal year-end 2023 (30 September 2023). AM Best expects Tower’s risk-adjusted capitalisation to remain at least at the very strong level over the medium term. Despite a reduction in fiscal year (FY) 2023, the company’s regulatory solvency margin is expected to grow over the medium term under the Interim Solvency Standard, supported by internal retention of earnings. Other supporting factors include strong financial flexibility, a prudent reinsurance programme and a conservative investment strategy.

Tower’s operating performance is assessed as adequate, demonstrated by a five-year weighted average return-on-equity (ROE) ratio of 4.2% (FY 2019-2023). Over this period, operating earnings were driven largely by technical performance coupled with modest investment income. Tower reported an ROE ratio of -0.4% and a net combined ratio of 103.2% in FY2023, mainly due to two large weather events, the Auckland Anniversary Weekend floods and Cyclone Gabrielle. The company’s expense ratio, which stood at approximately 29% in FY2023, is expected to decrease over the medium term as the company grows its premium base and improves efficiency through IT transformation. AM Best expects Tower to report positive underwriting and operating results over the medium term, supported by appropriate risk selection, pricing and positive investment returns.

Tower is a medium-size non-life insurer that operates predominantly in New Zealand, with some operations in the Pacific Islands. The company has a market share of 4% to 5% in New Zealand’s general insurance market and gross written premiums of NZD 511.5 million (USD 307.4 million) in FY2023. Tower’s core product offerings are domestic home and motor insurance, typically distributed through direct channels and partnerships.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Copyright © 2010-2020 & California Media Partners, LLC. All rights reserved.