Tower Group International Ltd., the insurer that agreed to be bought by ACP Re Ltd., plunged to a record low amid doubts over whether the deal will be completed.
Tower Group International Ltd., the insurer that agreed to be bought by ACP Re Ltd., plunged to a record low amid doubts over whether the deal will be completed.
Tower Group International, Ltd. has filed a Form 8-K stating that, on May 20, the Massachusetts Department of Insurance entered an amended order of administrative supervision with respect to Tower subsidiaries.
The MGA business model has changed and become more stable since the 1990s and early 2000s, when the market entered a period of volatility due to MGAs association with the failures of multiple insurers, says a new report.
S&P says it believes overall property and casualty reserves are adequate, and does not believe that recent reserving troubles at QBE Ltd., Tower Group International, and Meadowbrook Insurance Group are indicative of an overall trend for the industry.
ACP Re Ltd. will acquire 100% of the outstanding stock of Tower Group International and merge Tower with a subsidiary. AmTrust will acquire the renewal rights of Tower Groups commercial lines insurance operations, and National General Holdings Corp. will acquire the personal lines renewal rights.
Fitch says it believes Tower's competitive position has been substantially reduced and has material concerns about Tower's ability to maintain current business.
Tower Group International this week announced the sale of its stake in Canopius Group Limited for $69.7 million to pay off a $70 million bank line, and also reported additional reserve charges in some commercial lines including workers compensation.
Tower Group International says there is substantial doubt about [its] ability to continue as a going concern" after reporting a $507.3 million 2013 second-quarter net loss due in large part to over $300 million in reserve strengthening reported last month.
As regulation has prompted banks to move toward consolidation, one insurance executive here at the PCI Annual Meeting is calling for the same in his industry.