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Tower Group International, Ltd. Message Board

  • getintoh20 getintoh20 Oct 7, 2013 4:25 PM Flag

    , the Company expects to strengthen loss reserves by approximately $365

    Tower Group International, Ltd. (NASDAQ: TWGP) announced 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.

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    • 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.

 
TWGP
2.230.00(0.00%)Sep 12 4:00 PMEDT

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