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.
Fitch ratings says the announced reserve charges for the third quarter of between $75 million and $105 million are in the same lines — workers' comp, commercial multi-peril liability, other liability and commercial auto liability — on which the company took reserve charges of over $300 million in the second quarter.
Due in large part to those reserve charges, Tower reported a second-quarter net loss of $507.3 million, announced a workforce reduction, and issued a statement casting doubt on its “ability to continue as a going concern.”
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