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Tower Australia rating revised upward

Standard and Poor’s (S&P) has lifted the outlook for life insurance specialist Tower Australia from stable to positive.

The ratings agency has affirmed Tower’s A- rating, citing favourable trends in premium growth and earnings since Tower Australia separated from its NZ counterpart late in 2006.

S&P analyst Thomas Cherian says Tower is well placed to take advantage of the growing local market.

“Tower Australia’s operations have improved materially, experiencing decreasing expense ratios, greater product and service differentiation, and advancements in technology and risk management,” he said.

S&P has slated a potential rating upgrade for Tower Australia within the next year.