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.
The Hamilton, Bermuda-based insurer also says it will cut its workforce by 10 percent as part of an initiative to “streamline its operations and focus resources on its most profitable lines of business.”
Tower Group announced it was taking a $214 million goodwill impairment charge in October when the company reported that it needed to strengthen reserves by about $326.7 million primarily for accident years 2008-2011.
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