Tower Group International TWGP announced today that it has
completed, with the assistance of its independent actuarial consultants, a
comprehensive review of the Company's loss reserves as of June 30, 2013. As
a result of the review, the Company expects to strengthen loss reserves by
approximately $365 million (approximately $185 million of which was
attributable to its U.S. Insurance subsidiaries), primarily for accident
years 2009 through 2011 in commercial insurance lines of business, including
workers' compensation, commercial multi-peril, commercial auto and other
liability lines. The reserve strengthening reflects adverse loss emergence,
coupled with changes in judgment, including actuarial factors.
Since 2010, Tower has been shifting its business mix, significantly
de-emphasizing the lines that contributed to the reserve strengthening and
modifying its book of commercial lines business.
In addition, Tower expects to report a non-cash goodwill impairment charge
of approximately $215 million for the second quarter of 2013, representing
all goodwill associated with its commercial and specialty and reinsurance
segments. Tower is completing its evaluation of other intangible assets
associated with its commercial and specialty and reinsurance segments, as
well as the goodwill associated with its personal lines segment.
Tower's U.S. insurance subsidiaries continue to maintain risk based capital
levels in excess of those required by their respective domiciliary states.
The Company expects to announce its full results for the second quarter
promptly upon the conclusion of management's evaluation of the results.
Tower also announced that the Company's Board of Directors is reviewing a
range of strategic options with its lead financial advisor, JP Morgan
Securities LLC.
About Tower Group International, Ltd.
Tower Group International, Ltd. is a Bermuda-based global diversified
insurance and reinsurance holding company and is listed on the NASDAQ Global
Select Market under the symbol TWGP. Through our insurance and reinsurance
subsidiaries in the U.S. and Bermuda, collectively referred to as Tower
Group Companies, we deliver a broad range of commercial, personal and
specialty insurance products and services in the U.S. and specialty
reinsurance products globally through our distribution and underwriting
partners. For more information, visit Tower's website at
http://www.twrgrpintl.com.
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. This press release and any other
written or oral statements made by or on behalf of Tower may include
forward-looking statements that reflect Tower's current views with respect
to future events and financial performance. All statements other than
statements of historical fact included in this press release are
forward-looking statements. Forward-looking statements can generally be
identified by the use of forward-looking terminology such as "may," "can, "
"could," "will," "plan," "expect," "project," "intend," "estimate,"
"anticipate," "believe" and "continue" or their negative or variations or
similar terminology. All forward-looking statements address matters that
involve risks and uncertainties. Accordingly, there are or will be important
factors that could cause the actual results of Tower to differ materially
from those indicated in these statements. Please refer to Tower's filings
with the SEC, including among others Tower's Annual Report on Form 10-K for
the year ended December 31, 2012 and subsequent filings on Form 10-Q, for a
description of the important factors that could cause the actual results of
Tower to differ materially from those indicated in these statements.
Forward-looking statements speak only as of the date on which they are made,
and Tower undertakes no obligation to update publicly or revise any
forward-looking statement, whether as a result of new information, future
developments or otherwise.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In: News
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in