A.M. Best Co. has affirmed the financial strength ratings (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of the pooled and reinsured members of the Tower US Pool (Tower). Concurrently, A.M. Best has affirmed the ICR of “bbb-” and debt rating of “bbb-” on $142.5 million 5.00% senior convertible notes due 2014 of the parent company, Tower Group, Inc. (TWGP) [NASDAQ: TWGP]. The outlook for all ratings is positive.
A.M. Best also has affirmed the FSR of A- (Excellent) and ICR of “a-” of CastlePoint Reinsurance Company, Ltd. (CPRe) (Bermuda). The outlook for both ratings is stable. Additionally, A.M. Best has withdrawn the FSR of A- (Excellent) and ICR of “a-” of Mountain Valley Indemnity Company (MVIC). All companies are headquartered in New York, NY, unless otherwise specified. (See below for detailed listing of the companies and ratings.)
The rating affirmations for Tower’s members reflects their historically strong underwriting results, consistently favorable operating performance, supportive capitalization and diversified business platform. Tower has been able to expand the scope and breadth of its product offerings, distribution channels and geographic footprint through the successful execution of its mergers and acquisitions strategy, which has included both company acquisitions and renewal rights transactions. While Tower will continue to seek out insurance company acquisitions that fulfill specific corporate objectives, a key part of Tower’s future growth strategy includes the recent launch of an organic growth initiative.
Partially offsetting these positive rating factors is Tower’s execution risk associated with any future endeavors, including the recently announced investment in Canopius. This investment, which is subject to the completion of Canopius’ acquisition of Omega, would accelerate Tower’s involvement with the Lloyd’s market and also provide TWGP the option of combining with the Bermuda reinsurance business currently operated by Canopius. Additional offsetting rating factors include operating in a highly competitive environment characterized by significant price competition, the effects from adverse economic conditions and the substantial amount of business derived from the northeastern United States.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV