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Friday, Oct 4
Tower Group exploring P-E investment, WSJ reports
- Tower Group (TWGP) is seeking ways to bolster its capital as the insurer substantially increases its commercial claims reserves following a big hit from superstorm Sandy, and it has recently approached P-E firms, including Blackstone (BX), KKR and Warburg Pincus, in an effort to raise money, WSJ reports.
- TWGP said in August it could face a charge of $60M-$110M against earnings to boost its reserves, and the money raised would shore up its capital base once the charge is taken; the insurer also could seek to raise some or all of the new money in the public markets.
- Shares -2.5% AH.