Reuters: Global Markets: Tower Group shares plunge to life-low as loss reserve triples

Reuters: Global Markets Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Compare Hotels Find great prices for amazing hotels wherever your next destination may be. It's simple to search 100+ sites at once! From our sponsors

Tower Group shares plunge to life-low as loss reserve triples Oct 8th 2013, 14:55 Share this Email Print Reprints Tue Oct 8, 2013 10:55am EDT (Reuters) - Shares of Tower Group International Ltd (TWGP.O) fell 40 percent to a life-time low on Tuesday after the company tripled its loss reserve to about $365 million, much higher than what the property and casualty insurer indicated. Tower Group shares fell to $4.42 on Tuesday morning. More than 10.4 million shares, about five times their 50-day average, had changed hands by 10:36 a.m. ET. Tower Group also said on Monday that its board is reviewing a range of strategic options but did not indicate when it would publish its already delayed results. The stock has halved in value since September 17, when the company delayed filing of its second-quarter results. Analysts say the company will have to either sell big parts of itself or the entire company but doing so will be difficult. "Tower Group is on a short clock to accomplish any transaction (capital raise or sale of the company) due to the recently announced reinsurance agreements expiring at the end of 2013," Ken Billingsley, an analyst with Compass Point Research & Trading LLC, said in a note. CRT Capital Group analyst David Epstein said the low stock price will make it difficult for Tower Group to raise capital. (Reporting by Tanya Agrawal in Bangalore; Editing by Don Sebastian) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions