A.M. Best Places Credit Ratings of TOWER Insurance Limited and TOWER Limited Under Review With Developing Implications
Jason Shum, +65 6589 8400, ext. 217
Senior Financial Analyst
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
Moungmo Lee, +65 6589 8400, ext. 210
Managing Director, Analytics
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
A.M. Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of TOWER Insurance Limited (TIL). A.M. Best also has placed under review with developing implications the Long-Term ICR of “bbb-” of TIL’s ultimate parent, TOWER Limited (TL). Both companies are domiciled in New Zealand.
The Credit Rating (rating) actions follow the announcement that TL and Fairfax Financial Holdings Limited (Fairfax) have entered into an agreement under which Fairfax will acquire 100% of TL shares at NZD 1.17 per share, for an aggregate purchase price of NZD 197 million.
The ratings will remain under review until the close of the transaction, and until A.M. Best completes its discussions with the Fairfax management team. Any potential rating impact from actual or anticipated changes to TL’s and TIL’s credit profiles also will be assessed. Additionally, A.M. Best will factor its view of the extent of Fairfax’s financial support into the final rating determination.
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 A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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