Bermuda-based Tower Group has substantially increased its loss reserves by $365 million in order to fill holes in its 2009 to 2011 accident year business.
The company has been shifting its business mix since 2010 in an effort to “de-emphasise the lines that contributed to the reserve strengthening” said Tower, with the company now on more confident ground after Tower failed to provide its second quarter results to the Securities and Exchange Commission in June.
Tower stated that its full results for the second quarter will be published as soon as management concludes it evaluation of the company’s current position.
In addition to reserve strengthening, Tower Group “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 continues to evaluate other intangible assets associated with its commercial and specialty and reinsurance segments, and goodwill associated with its personal lines segment.
Tower indicated that its management “is reviewing a range of strategic options” with JP Morgan Securities.
Tower Group, Bermuda, insurance, reinsurance, JP Morgan