As previously announced, on March 13, Tower Group International and Tower Group consummated a merger transaction with Canopius Holdings Bermuda Limited which then led to changes in the company’s operating and reporting segments and updates to its internal controls in the second quarter. Based on these changes and updates, the company’s management has concluded that additional time is needed to review matters relating to the estimate of the company’s loss reserves, and the related impact to the recoverability of its goodwill and deferred tax assets. The company is working to resolve these matters with the assistance of outside professionals, including an independent actuarial firm to review the company’s loss reserves. This review process by an independent actuarial firm is typically conducted at year-end, but the company will use the report of the outside actuarial firm in connection with establishing its loss reserves as of June 30. As a result, the company is unable to timely file its Form 10-Q for the quarterly period ended June 30 without unreasonable effort or expense, and the company could not eliminate the reasons causing the inability to file the Second Quarter Form 10-Q timely without unreasonable effort or expense. The company is continuing to work diligently on the completion of its Second Quarter Form 10-Q and expects that it will be filed with the SEC within the next 30 days.
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