Acquisition announcement triggers Tower rating review

17 February 2017 Market Information NZX Limited Level 1, NZX Centre 11 Cable Street Wellington New Zealand Company Announcements Office ASX Limited Exchange Centre Level 6, 20 Bridge Street Sydney NSW 2000 Australia Acquisition announcement triggers Tower rating review Global insurance company ratings specialist A.M. Best Company has placed Tower Insurance Limited (TIL) and Tower Limited's (TL) financial strength rating under review following a recent acquisition announcement. The company's issuer credit rating was also placed under review. In its announcement, A.M. Best Company noted that this rating action follows the announcement that TL and Fairfax Financial Holdings Limited (Fairfax) have entered into an agreement under which Fairfax will acquire 100% of TL shares at NZD 1.17 per share, for an aggregate purchase price of NZD 197 million. The ratings will remain under review until the close of the transaction, and until A.M. Best completes its discussions with the Fairfax management team. Tower Chairman Michael Stiassny said the rating action was expected. "An out-of-cycle rating review is standard business practice in the event a company is in play," he said. A copy of the A.M. Best Company's news release is attached. ENDS TOWER Michael Stiassny Chairman Tower Limited ARBN 088 481 234 Incorporated in New Zealand To arrange media interviews, please contact in the first instance: Nicholas Meseldzija Tower Limited Head of Corporate Communications Mobile: +64 21 581 869 Email: nicholas.meseldzija@tower.co.nz End CA:00296882 For:TWR Type:GENERAL Time:2017-02-17 08:30:05