Tower Group (TWGP)

• Article
• Discussion
• Edit
• History
• Bookmark

Bulls: Reasons To Buy Feeling Bullish? Be the first to explain why this would make a good investment Bears: Reasons To Sell Feeling Bearish? Be the first to explain why this would make a poor investment Send the authors a comment or suggestion Be the first to make a suggestion See All Suggestions

Top Contributors Eric Rothmann www.zacks.com

Based in New York City, Tower Group was started in 1990 to provide specialty property-casualty lines to small to mid-sized businesses and individuals in New York State and surrounding areas. The company went public through an IPO in October 20, 2004, selling 14,129,007 shares of common stock (a 76% interest in the company), to raise $108 million. Tower Group focuses on markets typically underserved by the major carriers. Many of these markets are too small or risky for the national carriers to underwrite profitably. By developing an expertise in certain product lines and geographic markets, the company believes it can profitably grow in areas shunned by other carriers. These products include several commercial lines for small businesses: property, liability, workers' compensation and auto insurance and personal lines products such as homeowner's policies and auto. The risks are low severity and short tailed exposures with small premiums per policy. Tower Group carries an A- (Excellent) financial strength rating from A.M. Best Co.

The company operates in three segments:

Insurance 82.6% of 3Q07 underwriting and fee revenues of $112.0 million through Tower Insurance Company of New York (TICNY) the company underwrites commercial automobile, property, workers' comp, and multi-peril package insurance products. Also underwrites homeowners and other personal lines.

Reinsurance 0.8% of 3Q07 underwriting and fee revenues through TICNY, the company assumes reinsurance premiums directly from the clients of the company's in-house broker, Tower Risk Management (TRM), or from the reinsurers that reinsure those clients. Reinsurers often require that Tower take a share of business. The company's reinsurance business has historically been unprofitable but the losses are more than offset by commissions generated from TRM for placing the reinsurance programs with underwriters.

Insurance Services 8.16% of 3Q07 underwriting and fee revenues - through its managing general agency, TRM, places risks with primary underwriters and arranges reinsurance programs for those carriers, and provides claims administration services.

 Tower Group

	Select All  |  Select None Metrics Premiums Earned Premiums Assumed Investment Gain Total Investments Life Insurance Premiums Property & Casualty Premiums Health Insurance Premiums Reinsurance Recoverables Net Income Gross Premiums Premiums Ceded Investment Income Combined Ratio Loss Ratio Cancel

	Select All  |  Select None Companies Arch Capital Group (ACGL) Argonaut Group (AGII) Aspen Insurance Holdings (AHL) Alfa (ALFA) American Safety Insurance Holdings (ASI) Allied World Assurance Company Holdings (AWH) Axis Capital Holdings (AXS) W.R. Berkley (WRB) Castlepoint Holdings (CPHL) CRM Holdings (CRMH) Darwin Professional Underwriters (DR) EMC Insurance Group (EMCI) Endurance Specialty Holdings (ENH) Erie Indemnity Company (ERIE) Enstar Group (ESGR) Fairfax Financial Holdings (FFH) Flagstone Reinsurance Holdings (FSR) HCC Insurance Holdings (HCC) Harleysville Group (HGIC) United America Indemnity (INDM) Mercury General (MCY) Mercer Insurance Group (MIGP) Midland Company (MLAN) Montpelier RE Holdings (MRH) Max Capital Group (MXGL) National Atlantic Holdings (NAHC) National Interstate (NATL) Navigators Group (NAVG) North Pointe Holdings (NPTE) National Security Group (NSEC) Nymagic (NYM) OneBeacon Insurance Group (OB) Odyssey Re Holdings (ORH) Philadelphia Consolidated Holding (PHLY) Pro-Assurance (PRA) PartnerRe (PRE) Platinum Underwriters Holdings (PTP) Everest Re Group (RE) RenaissanceRe Holdings (RNR) SCPIE Holdings (SKP) The Hanover Insurance Group (THG) Transatlantic Holdings (TRH) Tower Group (TWGP) United Fire & Casualty Company (UFCS) Unico American (UNAM) Unitrin (UTR) UNIVERSAL INSURANCE HOLDINGS (UVE) XL CAPITAL LIMITED (XL) Zenith National Insurance (ZNT) White Mountains Insurance Group (WTM) Baldwin & Lyons (BWINB) Phoenix Companies (PNX) PMA Capital (PMACA) Quanta Capital Holdings (QNTA) 21st Century Holding Company (TCHC) The Travelers Companies (TRV) Cancel

Choose View:20042005200620072008Most Recent

2004 Data

2005 Data

2006 Data

2007 Data

2008 Data

Most Recent Data Available

+ Select more metrics (14)

Company	Data From	Investment Income	Gross Premiums	Combined Ratio	Premiums Ceded	Loss Ratio
Enstar Group (ESGR)	2006	$48.1M[1]	Add	Add	Add	Add
Max Capital Group (MXGL)	2006	$150M[2]	$865M[2]	86.4%[3]	($231M)[4]	67.7%[3]
Tower Group (TWGP)	2006	$23M[5]	$433M[5]	87.6%[5]	($188M)[6]	60.3%[5]
United Fire & Casualty Company (UFCS)	2006	$122M[7]	$523M[8]	87.9%[9]	($47M)[8]	59.6%[9]

+ Select more companies (56)

See all Property & Casualty Reinsurance Industry WikiData

[edit] References

1. ↑ Source: 2006 ESGR 10-K pg 63
2. ↑ ^{2.0 2.1} Source 2006 MXGl Page 42 Form 10 K
3. ↑ ^{3.0 3.1} Source 2006 MXGl Page F-30 F-29 F-28 Form 10 K
4. ↑ Source 2006 MXGl Page F-4 Form 10 K
5. ↑ ^{5.0 5.1 5.2 5.3} Source : 2006 THG 10-K pg 59
6. ↑ Source : 2006 THG 10-K pg F 22
7. ↑ Source : 2006 UFCS 10-K pg 25
8. ↑ ^{8.0 8.1} Source : 2006 UFCS 10-K pg 32
9. ↑ ^{9.0 9.1} Source : 2006 UFCS 10-K pg 31