Tower rating reaffirmed as A- (Excellent)

16 March 2020 Market Information NZX Limited Level 2, NZX Centre 11 Cable Street Wellington New Zealand Company Announcements Office Australian Securities Exchange Limited Exchange Centre Level 6, 20 Bridge Street Sydney NSW 2000 Australia Tower rating reaffirmed as A- (Excellent) Global insurance company ratings specialist A.M. Best Company has reaffirmed Tower Insurance Limited's (TIL) financial strength rating as A- (Excellent), with a stable outlook, reflecting Tower's performance, very strong balance sheet, neutral business profile and appropriate enterprise risk management. TIL's Issuer Credit Rating (ICR) was also affirmed as "a-" with its parent company Tower Limited (TL) affirmed a Long-Term ICR of "bbb-". In its announcement, A.M. Best Company noted that the rating reflects an improved return-on-equity ratio and strengthened operating performance. AM Best also noted it expects TIL to continue to report positive underwriting and operating results over the medium term, supported by appropriate risk selection and pricing, as well as through anticipated expense efficiencies achieved by core system upgrades in recent years. Tower Chairman Michael Stiassny welcomed the confirmation from A.M. Best saying that it reinforced the fact that the company has been turned around. "A.M. Best's announcement is confirmation that we have a strong and stable base to work from and are accelerating the delivery of our strategy to continue delivering positive results," said Stiassny. A copy of the A.M. Best Company's news release is attached. ENDS This announcement is authorised by the Board. Richard Harding Chief Executive Tower Limited ARBN 088 481 234 Incorporated in New Zealand For media queries, please contact: Nicholas Meseldzija Head of Corporate Affairs and Reputation Tower Limited Mobile: +64 21 531 869 Email: nicholas.meseldzija@tower.co.nz End CA:00349992 For:TWR Type:ADMIN Time:2020-03-16 09:36:29