SINGAPORE, Aug 17 (Bernama-BUSINESS WIRE) -- A.M. Best has
revised the implications of the under review status to negative from
developing for the Financial Strength Rating of A- (Excellent) and the
Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of TOWER Insurance Limited
(TIL) (New Zealand). Concurrently, A.M. Best has revised the
implication of the under review status to negative from developing for
the Long-Term ICR of “bbb-” of TIL’s ultimate parent, TOWER Limited (TL) (New Zealand).
The revision of the under review status to negative implications comes after the Commerce Commission of New Zealand announced that it has declined to grant clearance to Vero Insurance New Zealand Limited to acquire up to 100% of the shares in TL. The negative implications status reflects TL’s relatively weak balance sheet strength for its current rating levels. A.M. Best’s concern, however, is offset partially by management considering a capital raise to strengthen the group’s consolidated capital position.
The ratings will remain under review with negative implications pending further discussions between A.M. Best and TL’s management team related to its capital-raising initiatives.
Downward rating pressure could result if TL fails to improve its consolidated capital position to a level more supportive of the current ratings.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
The revision of the under review status to negative implications comes after the Commerce Commission of New Zealand announced that it has declined to grant clearance to Vero Insurance New Zealand Limited to acquire up to 100% of the shares in TL. The negative implications status reflects TL’s relatively weak balance sheet strength for its current rating levels. A.M. Best’s concern, however, is offset partially by management considering a capital raise to strengthen the group’s consolidated capital position.
The ratings will remain under review with negative implications pending further discussions between A.M. Best and TL’s management team related to its capital-raising initiatives.
Downward rating pressure could result if TL fails to improve its consolidated capital position to a level more supportive of the current ratings.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
Contacts
A.M. Best
Jason Shum, +65 6589 8400, ext. 217
Senior Financial Analyst
jason.shum@ambest.com
or
Moungmo Lee, +65 6589 8400, ext. 210
Managing Director, Analytics
moungmo.lee@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com
Jason Shum, +65 6589 8400, ext. 217
Senior Financial Analyst
jason.shum@ambest.com
or
Moungmo Lee, +65 6589 8400, ext. 210
Managing Director, Analytics
moungmo.lee@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com
Source: A.M. Best
No comments:
Post a Comment