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Tower Group Reels After Delaying Q2 Earnings Report, Again

  +Follow September 18, 2013 10:30AM
Tickers Mentioned:

Property and casualty insurer Tower Group International Ltd. (TWGP) was battered on Sept 18 after the company announced they would delay their second quarter earnings report for a second time as they continue to re-assess losses stemming from tropical Superstorm Sandy.

In the first delay of their earnings call, Tower Group had stated they needed more time to fully assess the “adverse reserve losses,” or unexpected simultaneous claims that occur after a major catastrophe, stemming from customer claims associated with Sandy. At the time, the company hinted that these unexpected losses could total as much as $110 million.

The company then promised the earnings report “within 30 days” while issuing the worrying guidance report.  However, as 30 days came and went, it became clear the company had reneged on that promise. Finally, on Sept. 17, the company released a statement slating the release of the earnings for “during the week of October 7.”

The earnings report was originally supposed to be released to shareholders on Aug. 7.

Investors are quickly losing faith in Tower Group, and analysts have been getting increasingly bearish. Guggenheim initiated coverage with a “neutral” rating. FBR & Co. lowered Tower Group from outperform to market perform, and lowered their price target from, $22 to $17. And on Aug 30 Zacks downgraded the stock from “hold” to “sell.”

Since the first earnings delay a month ago, Tower Group has plummeted, losing over 50 percent of its value in six weeks.  They lost 26.55 percent on the day to bottom out at $10.17 a share, their lowest price in eight years.


(image of Superstorm Sandy damage courtesy of Wikimedia Commons)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for TWGP
Market News Desk
28 Aug 14 18:51:20
$TWGP: Weakness Seen in Tower Group International (TWGP): Stock Tanks 11.1% http://t.co/ga2THb8oOW http://t.co/FY1LHFXA0I
Lu Crowley
28 Aug 14 18:19:16
$TWGP A.M. Best Downgrades Ratings http://t.co/H9PTQo9A6u
Keesha Zhang
28 Aug 14 18:19:15
$TWGP A.M. Best Downgrades Ratings of http://t.co/lyAvIDvUI1
28 Aug 14 18:12:28
$TWGP bonds mature Sep 15th. Do the creditors wait to see if merger can close by Nov or do they send equity home with empty pockets now?
28 Aug 14 18:08:09
$TWGP 's would be buyer... http://t.co/qnkq3RQXgL it matters to regulators... http://t.co/qePTeSsmS3
Tomas Ellsworth
28 Aug 14 16:40:26
A.M. Best Downgrades Rat $TWGP http://t.co/tBaW4OX8LX
28 Aug 14 15:47:04
$VIIC ran up 720% Today in an explosive move! Our new picks are coming soon: http://t.co/EdxLh9u5Nx $TWGP $ZOLT $KIOR
28 Aug 14 15:19:28
3/5 $twgp $afsi maine reg 08/14 "acp re produced a spreadsheet with data relating to the reopening of closed workers compensation claims."
Suzi Scales
28 Aug 14 13:59:12
$TWGP A.M. Best Downgrades R http://t.co/Y1HvnjAifR
Market Updates
28 Aug 14 13:51:21
$TWGP: A Towering Spread: Tower Group International, Ltd. - 14% Upside http://t.co/XBP0sDXDYy http://t.co/AgbMQlwBX8
28 Aug 14 13:16:13
@BoydRoddy @3904b15 I do not believe MA, NJ nor NH have even scheduled hearings yet. What happens Sep 15th when the $TWGP bonds mature?
28 Aug 14 12:59:11
$TWGP - A.M. Best Downgrades Ratings of Tower Group International, Ltd. and Its Subsidiaries; Maintains Under http://t.co/NkV2Nh4VeW
28 Aug 14 12:59:08
$TWGP - A.M. Best Downgrades Ratings of Tower Group International, Ltd. and Its Subsidiaries; Maintains Under http://t.co/T8OoDow59X
VisualStock Resource
28 Aug 14 12:59:06
$TWGP - A.M. Best Downgrades Ratings of Tower Group International, Ltd. and Its Subsidiaries; Maintains Under http://t.co/FKJDQtEJzG
Suzi Scales
28 Aug 14 11:01:07
$TWGP TOWER GROUP INTERNATIONAL, LTD. Files SEC form 10-Q, Quarter http://t.co/7UsO4cwgjG
Daily Contracts
28 Aug 14 10:12:01
Real-Time feed of company contracts, original agreements and executive updates from Tower Group (Pty) Ltd $TWGP http://t.co/mKtT8AOcsA
Teddy Abney
28 Aug 14 09:23:32
$TWGP TOWER GROUP INTERNATIONAL, LTD. Files SEC form 10-Q, Quarterly http://t.co/F1R7ugsO1a
Financial Updates
28 Aug 14 05:51:20
$TWGP: TOWER GROUP INTERNATIONAL, LTD. Files SEC form 10-Q, Quarterly Report http://t.co/7lUwUrM7Rf http://t.co/06NfJ0bNKi
28 Aug 14 05:13:58
Tower Group International $TWGP Posts Quarterly Earnings Results, Misses Expectations By $0.67 EPS http://t.co/yx1tmjeHIj
28 Aug 14 04:57:30
Tower Group International $TWGP Releases Quarterly Earnings, Misses Expectations By $0.67 EPS http://t.co/iogA4icgLL
US Banking News
28 Aug 14 04:53:13
Tower Group International $TWGP Releases Quarterly Earnings, Misses Expectations By $0.67 EPS http://t.co/eScu9EcWGo
US Banking News
28 Aug 14 01:35:45
Tower Group International announces earnings. ($0.81) EPS. Misses estimates. http://t.co/auCmpv8wis $TWGP #TWGP
27 Aug 14 15:16:39
$TWGP Went up over 1% after closing. Makes 1.2 K number of employees http://t.co/8xG1UUmSX1
Market News
27 Aug 14 11:51:21
$TWGP: Watch List: Marin Software Inc (MRIN), Tower Group International, Ltd. (TWGP ... http://t.co/xN3Z18nuNR http://t.co/wfwasCT0sK
Wall Street Monitor
27 Aug 14 10:51:23
$TWGP: Tower Group International Ltd. (TWGP) Reports The Nasdaq Listing ... http://t.co/aIToqVLxmz http://t.co/m71LXM6twf
Wall Street Monitor
27 Aug 14 08:51:18
$TWGP: Tower Group: Why is it Down to Sell? http://t.co/1ok4YyZrD5 http://t.co/dKWVW41XNW
27 Aug 14 08:11:51
@3904b15 @BoydRoddy @max02050 large volume in $TWGP yesterday >3MM shares traded
27 Aug 14 05:01:59
we are loving $TWGP http://t.co/4OewIl0Pyk
Gray Asbury
27 Aug 14 04:36:01
Dani Beck
27 Aug 14 04:15:26
TOWER GROUP INTERNATIONAL, LTD. Files SEC form 10-Q, Qua $TWGP http://t.co/W52pe4Og4I
Leisha Kenyon
27 Aug 14 03:49:59
TOWER GROUP INTERNATIONAL, LTD. Files SEC form 10-Q, Q $TWGP http://t.co/mhlQsYcaA4
Business Updates
26 Aug 14 21:51:19
$TWGP: Will Tower Group be Saved by ACP Re Merger? http://t.co/kF9gF1Qcmx http://t.co/Oi6tit7C9t
26 Aug 14 20:54:44
@EuclideanSpace @BoydRoddy @max02050 $twgp is what it is (#disaster). Hearings on past could be held post close...gotta be something else.
26 Aug 14 12:19:23
$TWGP ...trading Suggest ... either Someone is buying Protection on possible BK or ... someone is speculating on BK .. target: <1$ (-50%)
26 Aug 14 09:19:50
RT @WallStJesus: $TWGP puts active again, Oct $1 2552 traded
26 Aug 14 09:02:49
$TWGP puts active again, Oct $1 2552 traded
26 Aug 14 04:17:28
Moved Lower Bollinger Band $AGRO $ATHX $AU $AUY $BERY $BTG $CEF $EXK $MCP $MX $PMC $RMTI $SLW $TRW $TWGP $VTG $ZU http://t.co/soUjCB8NwA
Business News Now
25 Aug 14 20:51:18
$TWGP: Tower Group International Ltd. (TWGP) Reports The Nasdaq Listing ... http://t.co/siew2WsyIs http://t.co/qMmWAm4UHw
25 Aug 14 20:19:14
@EuclideanSpace @BoydRoddy @max02050 Care to elaborate on your comment $twgp about to get weird? $AFSI & friends plenty weird already.
25 Aug 14 12:58:45
@max02050 @3904b15 @BoydRoddy $TWGP do you think this incest causing slow regulatory approvals? I can find update on them. Seems to be key.
24 Aug 14 17:06:34
$TWGP just finished careful re-read of indenture and merger agmt. this thing's gonna get weird.
23 Aug 14 11:00:39
@max02050 @BoydRoddy Don't forget best part. acp assets=$AFSI stock. $AFSI and $NGHC buying $TWGP subs and 100% reins w acp. #enron-esque
22 Aug 14 09:54:57
$TWGP check out the 10Q filed yesterday... bond maturity Sep 15... would you pay >$143MM in cash for this equity?
Financial Headlines
21 Aug 14 14:51:11
$TWGP: TOWER GROUP INTERNATIONAL, LTD. Financials http://t.co/cUP5V1ijXR http://t.co/ci1NLRJgul
21 Aug 14 13:43:04
@BoydRoddy made a mistake....$afsi was going to pay $5.50 for $twgp before rescinding on Dec 12th ironically same day as @geoinvesting piece
21 Aug 14 13:15:53
$TWGP New SEC Document(s) for Tower Group International, Ltd. From our Stock News Alerts App
  +Follow September 18, 2013 10:30AM



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