Rating agency runs ruler over TOWER

AM Best has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of "a-" of TOWER Insurance, TOWER Health & Life (THL) and TOWER Life (TLNZ).

The outlook for all ratings is stable.

TOWER's rating reflects the group's continued overall operating profitability and improved risk-adjusted capitalisation.

Its after-tax profits increased by 16% to $58 million in fiscal-year 2010, with all insurance segments contributing to the group's profit growth. Operating profits remained positive into the first half of fiscal-year 2011 and lapse rates for all insurance segments continued to improve.