AM Best revises outlook to stable for Tower Bonding & Surety Company


OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best revised the outlook from negative to stable and confirmed the financial strength rating of B- (Fair) and the long-term issuer credit rating of “bb-” (Fair) of Tower Bonding & Surety Company (Tower Bonding) ) (San Juan, Puerto Rico).

The ratings reflect the strength of Tower Bonding’s balance sheet, which AM Best considers adequate, as well as its marginal operational performance, limited business profile and marginal enterprise risk management (ERM).

The outlook revisions to stable are based on AM Best’s expectation of continued stabilization of the strength of Tower Bonding’s balance sheet through organic surplus growth and more diversified investments. Tower Bonding’s assessment of balance sheet strength as adequate is based on the company’s high level of risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), as well as its prudent underwriting and debt measures. These positive rating factors are offset by moderately high financial leverage, as well as limited financial flexibility and scale of operation.

Tower Bonding’s business profile is limited due to its geographic focus and its products as a surety bond insurer in Puerto Rico. However, the company occupies a leading position in its niche. AM Best considers the company’s ERM profile to be marginal, as Tower Bonding’s risk management capabilities do not fully match its risk profile.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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