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A.M. Best Revises Under Review Status to Negative for Credit Ratings of TOWER Insurance Limited and TOWER Limited SINGAPORE, August 16, 2017 -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-" ofTOWER 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.

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Australian Disclosures

A.M. Best Asia-Pacific Limited (AMBAP), Australian Registered Body Number (ARBN No.150375287), is a limited liability company incorporated and domiciled in Hong Kong. AMBAP is a wholesale Australian Financial Services (AFS) Licence holder (AFS No. 411055) under the Corporations Act 2001. Credit ratings emanating from AMBAP are not intended for and must not be distributed to any person in Australia other than a wholesale client as defined in Chapter 7 of the Corporations Act. AMBAP does not authorize its Credit Ratings to be disseminated by a third-party in a manner that could reasonably be regarded as being intended to influence a retail client in making a decision in relation to a particular product or class of financial product. AMBAP Credit Ratings are intended for wholesale clients only, as defined.

Credit Ratings determined and disseminated by AMBAP are the opinion of AMBAP only and not any specific credit analyst. AMBAP Credit Ratings are statements of opinion and not statements of fact. They are not recommendations to buy, hold or sell any securities or any other form of financial product, including insurance policies and are not a recommendation to be used to make investment

/purchasing decisions.

Important Notice: A.M. Best's Credit Ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best's credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. For additional information regarding the use and limitations of credit rating opinions, as well as the rating process, information requirements and other rating related terms and definitions, please viewUnderstanding Best's Credit Ratings.

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Tower Limited published this content on 17 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 August 2017 21:56:04 UTC.

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