Tower's Medical business marked

A.M. Best Assigns Ratings to TOWER Medical Insurance Limited

A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to TOWER Medical Insurance Limited (TMI) (New Zealand). The outlook assigned to both ratings is stable.

TMI operates solely in New Zealand, and its principal activity consists of providing medical insurance and reinsurance services to TOWER Health & Life Limited (THL). TMI is a health insurance company wholly owned by THL, which in turn is ultimately owned by TOWER Limited. TOWER Limited is listed on the stock exchanges in Australia and New Zealand and conducts business in New Zealand and the Pacific Islands.

Currently, the majority of TOWER Limited’s health insurance business is written by THL, which is fully reinsured by TMI. TMI has a small book of health insurance business (less than 10% of premium revenue), which it owns directly. However, as part of TOWER Limited’s move to have TMI as a licensed insurer under New Zealand’s insurance prudential supervision regime, beginning October 1, 2012, TMI will be restructured as a direct health insurer, and THL will exclusively concentrate on pure risk life insurance.