Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Tower Group Using Reinsurance For Assurance

When I wrote about the "almost unbelievable" situation at Tower Group (NASDAQ:TWGP) on September 18, little did I know the story was about to get even more volatile. Not only did the stock plunge significantly on that day (down almost 30%), but the following days saw the stock fall another 30% before rebounding a bit.

On Tuesday night, the company announced a series of reinsurance agreements that should bring some stability to the situation. While two of the agreements will help the company manage and contain additional losses from its workers comp and multi-peril liability businesses, the others will help ease the company's capital needs for the remainder of the year and also give the company...

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