This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Tower Group Provides Update On Merger Status And Announces Filing Of 2012 Form 10-Q/As

Tower Group announced today that it has received all required insurance regulatory approvals for its merger agreement with Canopius Holdings Bermuda Limited (CHBL). Tower Group also announced today that it is restating its reports issued on Form 10-Q for the periods ended March 31, 2012, June 30, 2012 and September 30, 2012. During the review by the Securities and Exchange Commission (SEC) of the CHBL Form S-4, in connection with the previously announced merger between Tower and the Bermuda reinsurance operations of Canopius Group Ltd., Tower determined that a $3.1 million deferred tax item that had been recorded as a reduction to tax expense and disclosed in Tower’s report on Form 10-Q for the period ended March 31, 2012 should more appropriately be recorded as a reduction to goodwill. Tower has made this change and has also recorded into the periods in which they originated other immaterial adjustments that were initially recorded in the periods in which they were identified. In addition, Tower also recorded adjustments affecting the net income of the reciprocal businesses which did not affect earnings per share or book value per share for Tower’s common shareholders, because the reciprocal businesses are consolidated with Tower but are not included in net income attributable to Tower Group, Inc. or in Tower Group, Inc. stockholders’ equity. As a result of these immaterial adjustments, Tower is also revising its Form 10-K for the year ended December 31, 2011. Below is a summary of the impact of the adjustments on various shareholder measures:

($ in thousands, except per share data)      

9/30/12 Year todate

As reported As restated
Tower Group, Inc. Stockholders' Equity $1,054,981 $1,051,473

Per Share

$27.49 $27.40
Tower Group, Inc. Tangible Equity (1) $703,072 $704,119

Per Share

$18.32 $18.35
Net Income Attributable to Tower Group, Inc. $27,150 $23,985

Per Share - diluted

$0.70 $0.62
Operating Income (1) $30,242 $27,077

Per Share - diluted

$0.78 $0.69
Operating Return on Average Equity (1) 3.9% 3.5%
 

Year ended12/31/11

As reported As revised
Tower Group, Inc. Stockholders' Equity $1,034,142 $1,033,799

Per Share

$26.37 $26.36
Tower Group, Inc. Tangible Equity (1) $673,958 $678,170

Per Share

$17.18 $17.29
Net Income Attributable to Tower Group, Inc. $60,198 $60,481

Per Share - diluted

$1.47 $1.48
Operating Income (1) $56,048 $56,331

Per Share - diluted

$1.37 $1.38
Operating Return on Average Equity (1) 5.4% 5.4%
 

Year ended12/31/10

As reported As revised
Tower Group, Inc. Stockholders' Equity $1,045,001

$1,042,962

Per Share

$25.19

$25.14

Tower Group, Inc. Tangible Equity (1) $676,582

$679,098

Per Share

$16.31

$16.37

Net Income Attributable to Tower Group, Inc. $103,890 $106,356

Per Share - diluted

$2.38 $2.44
Operating Income (1) $97,155 $98,861

Per Share - diluted

$2.23 $2.26
Operating Return on Average Equity (1) 9.4% 9.5%
 

Year ended12/31/09

As reported As revised
Net Income Attributable to Tower Group, Inc. $96,798 $94,724

Per Share - diluted

$2.45 $2.39
Operating Income (1) $107,288 $105,975

Per Share - diluted

$2.71 $2.68
Operating Return on Average Equity (1) 14.0% 13.9%

Tower expects to have such revised reports filed with the SEC on or about January 17, 2013.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,614.54 -161.58 -0.91%
S&P 500 2,049.82 -18.07 -0.87%
NASDAQ 4,850.0680 -50.8170 -1.04%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs