Tower Australia has had an 'A-' rating affirmed, and outlook revised from stable to positive, by Standard & Poor's (S&P) Ratings Services.
The rating for the life insurance specialist reflects the favourable trends in premium growth, earnings and reputation the company has experienced since separating from its New Zealand counterpart in late 2006, S&P said.Evidence that improved business and operational metrics are translating into increased and sustainable earnings is the factor influencing a rating upgrade, according to S&P.
"Tower's operations have improved materially, experiencing decreasing expense ratios, greater product and service differentiation, and advancements in technology and risk management," S&P credit analyst Thomas Cherian said.
"The improvements boost the rating outlook to positive, reflecting a possible upgrade in the next 12 months."
This progress puts Tower in a good position to take advantage of the growing life insurance sector in Australia, S&P said.
S&P Ratings Services last week affirmed its 'A+' rating on Suncorp-Metway (Suncorp) and its core operating companies, reflecting the solid progress made on the integration of Promina group.
