It turns out the woes of severely troubled casualty and insurance company Tower Group International (TWGP) are not just limited to the present and the future. In a worrying announcement, the company revealed on Nov. 14 that they would be revising financial statements from 2011 and 2012 to fix accounting errors in their premium balances, almost certainly indicating past losses from an onslaught of hurrican damage claims were more severe than originally accounted.
Tower Group has shed over three-quarters of its value in the last three months as the losses attributed to claims from Superstorm Sandy continue to rock the company. The Bermuda-based insurer twice delayed earnings as they continued to reassess the extent of their losses, sending the company’s investors into a panic. Those second quarter earnings, which were first schedule to be released on Sept. 18, still remain unreleased.
With the revelation that even past financial statements avail;able to investors are likely incorrect, Tower Group shed an additional 9 percent of its value before rebounding slightly. At midday, Tower Group was down 5.44 percent to hit $4 a share.
Tower Group is in Equities.com’s Turnaround Stock Portfolio, a collection of battered companies we surmised had a chance of turning things around. To date, Tower Group is far and away the worst performer in the portfolio, having shed 51 percent of its value since the portfolio’s inception.
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