A.M. Best Affirms Ratings of Foundation Life (NZ) Limited

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit ratings (ICR) of “a-” of Foundation Life (NZ) Limited (FLNZ) (New Zealand), formerly TOWER Life (N.Z.) Limited (TLNZ). The outlook for all ratings remains negative.

TOWER Insurance Limited sold TLNZ to Foundation Life (NZ) Holdings Limited, effective 29th August 2014. The business is now operating as a stand-alone entity ultimately owned by a number of Australian- based investment companies.

The ratings of FLNZ reflect the company’s strong risk-adjusted capitalization and well-diversified investment portfolio. A.M. Best also recognizes the stable run-off rate of the closed book of life policies, historically favorable experience and expectations of continued profitability.

Partially offsetting factors include the limited organic capital growth and run-off nature of its business profile.

The negative outlook reflects A.M. Best’s concerns with an emerging trend of increasing leverage and expense ratio per the company’s capital plan. A significant reduction in risk-adjusted capitalization due to dividend payout or adverse macroeconomic developments could result in a negative rating action.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150721005967/en/

A.M. Best Company
Larina Huang
Associate Financial Analyst
+65-6589-8400, ext. 218
[email protected]
or
Jason Shum
Financial Analyst
+65-6589-8400, ext. 217
[email protected]
or
Christopher Sharkey
Manager, Public Relations
+(1) 908 439 2200, ext. 5159
[email protected]
or
Jim Peavy
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644
[email protected]

Source: A.M. Best Company

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