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Tower Group Shares Sink after Warning on Reserves

Thursday, December 19, 2013 | 0

By Peter Mantius, Northern Bureau ChiefShares of Tower Group International Ltd. dove more than 30% on Wednesday, a day after management said that it would need to add $75 million to $105 million to reserves primarily for its workers' compensation, commercial liability and commercial auto lines.Tower Group announced in October that it was boosting its reserves by $365 million. Also on Tuesday, the company had announced that it paid off a $70 million credit facility with Bank of America from the proceeds of its sale of a 10.7% stake in Canopius Group Ltd. to an investment firm managed by Bre...

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