Tower Group, Inc.NASDAQ
Sep. 15, 2014, 10:56 AM
- In connection with ACP Re's closing of its purchase of Tower Group (TWGP) today, ACP's controlling shareholder, AmTrust Financial (AFSI -1%) has acquired from ACP the renewal rights to Tower's commercial lines business.
- CEO Barry Zyskind: "AmTrust is confident that it has the expertise, capital strength and technology to help grow the premium and profit potential of Tower's Commercial Lines Business."
- During 2014's H1, the business generated over $400M in premium for AmTrust.
- Previously: ACP Re, closes on purchase of Tower Group
Sep. 15, 2014, 9:25 AM
- Tower Group (NASDAQ:TWGP) owners will receive $2.50 in cash from ACP Re (NASDAQ:AFSI) for each share of Tower they own.
- Previously: ACP Re and Tower Group get regulatory approval for merger
Sep. 15, 2014, 7:44 AM
Sep. 12, 2014, 5:36 PM
Aug. 29, 2014, 6:16 PM
- Yesterday, Tower Group (NASDAQ:TWGP) received a letter stating "the SEC is conducting an investigation and attaching a subpoena for various documents." (8-K)
- The company also discloses A.M. Best has downgraded Tower's debt ratings further into junk territory. Tower says its ratings "remain under review with developing implications pending the planned merger with ACP Re Ltd."
Jun. 30, 2014, 12:46 PM
Jun. 27, 2014, 7:06 PM
- "Various of your representatives have orally suggested to us that an unwaived Insolvency Event has or may have occurred," reads a letter from Tower Group's (TWGP) general counsel to ACP's (AFSI) CFO. An insolvency event could potentially allow ACP to pull out of its merger agreement with Tower.
- Tower insists it doesn't think any insolvency event has happened, and is requesting ACP "unequivocally assure Tower in writing of its commitment to close the Merger on the terms and conditions set forth in the merger agreement and affirm that an Insolvency Event has not occurred."
- Should ACP fail to do so by 5PM on Monday, Tower will conclude ACP doesn't plan to voluntarily go through with the deal. "Tower reserves all of its rights, positions, and remedies under the merger agreement or otherwise."
May 13, 2014, 5:40 PM
May 13, 2014, 12:54 PM
- Euroins Insurance Group has made a $3.75/share offer for Tower Group (TWGP +13.8%), subject to due diligence and "negotiation and execution of a definitive written agreement." The offer price soundly exceeds the ACP Re's (AFSI +0.1%) revised $2.50/share bid.
- Tower shares are currently at $2.55, after having momentarily spiked as high as $3.01.
May 13, 2014, 12:45 PM
May 8, 2014, 12:48 PM
May 8, 2014, 9:55 AM
- The $3 per share purchase price is reduced to $2.50 - a far smaller haircut than some panicky sellers had anticipated. The amended agreement also reduces the termination fee Tower (TWGP +32.4%) would have to pay ACP Re (a unit of AFSI) under certain circumstances.
- The date by which Tower must vote on the deal and from which either party can opt out is extended to November 15, 2014.
- Previously: Tower Group plummets as merger deal called into question
- Kudos to SA Pro's Blue Ridge Buffettologist who urged investors to buy into the selloff of the past couple of sessions.
- TWGP is currently trading at $2.25.
May 7, 2014, 12:48 PM
- Downgrading Tower Group (TWGP -13.9%) to Underperform and halving its price target to $1.50, KBW notes an "elevated risk" of the merger with AmTrust (AFSI -1.1%) subsidiary ACP Re being restructured at a lower price (though it still expects the deal to close). At issue is the release of Tower's 2013 10-K which showed a big decline in book value to $1.67 per share at year's end from $3.62 at the end of Q3.
- The 2-day decline for Tower since the downgrade is about 21%.
- Buy the dip says Blue Ridge Buffettologist in an SA Pro article embargoed until tomorrow morning.
May 5, 2014, 9:11 AM
May 1, 2014, 7:26 AM
- Operating earnings of $97.4M or $1.24 per share up 70.4% from $57.2M and $0.74 one year ago. Annualized operating ROE of 27.8% up from 19.6%. Book value per share of $19.48 up from $17.85 at the end of 2013.
- Gross written premium of $1.67B up 76.5% Y/Y, with cut-through reinsurance agreement with Tower Group (TWGP) adding about $268M to that sum. Net written premium of $1.13B up 112.4%. Net earned premium of $829.1M up 103.2%. Combined ratio improves to 89.9% from 91.3%.
- Investment income (pre-realized gains) of $28.5M up 57.7% Y/Y. Net realized gains of $3.5M after-tax vs. $11.2M one year ago.
- CC at 10 ET
- Previously: AmTrust Financial beats by $0.33, beats on revenue
- AFSI no trades premarket
Jan. 21, 2014, 7:59 AM
- AmTrust Financial (AFSI) receives regulatory approval to provide a cut-through agreement for much of Tower Group's (TWGP) commercial business.
- CEO Barry Zyskind: "AmTrust has successfully completed this important initial step of the transaction. Obtaining regulatory approval for the Cut Through Reinsurance Agreement allows us to work quickly to preserve the Commercial Lines Business Tower has built over the last 15 years."
- Previous coverage