Property and casualty insurer,
Tower Group Inc.
) reported an operating loss of $1.43 per share in its fourth
quarter, worse than the Zacks Consensus Estimate of $1.13. In the
year-ago quarter the company reported operating income of 59
cents per share.
Results for the quarter suffered on account of pre-tax net loss
of $123.2 million on account of Sandy.
For full year 2012, the operating loss was 72 cents per share,
compared to full year 2011 operating income of $1.38 per diluted
The New York-based insurer posted total revenue of $475.0
million, up 4.4% year over year. The growth was primarily
attributable to increased net premiums earned.
Gross premiums written were reported at $481.2 million, up 10.8%
year over year. Net investment income was $30.1 million compared
to $32.1 million in the year-ago quarter.
Total expenses at Tower were $440.0 million, down 7.0% year over
year. The net combined ratio was 131.8% in the fourth quarter,
compared with 98.4% in the year-ago quarter.
segment witnessed an 8% increase in net premium written to $275.3
million. Total revenues for the segment edged up 2.3% year over
year to $294.8 million.
segment's net written premiums were up 1.9% year over year to
Revenues at the
segment improved 3.8% year over year to $8.2 million,
attributable to higher management fee as well as higher other
Tower's book value per share came in at $25.54 on Dec 31, 2012,
compared with $26.36 on Dec 31, 2011.
Operating return on average equity (ROE) was 10.1% in 2012
compared to 11.0% in 2011.
Including the effect of the proposed merger with Bermuda
reinsurance business of Canopius Tower Group expects to report
2013 operating earnings per share in a range of $2.75 to $2.95.
Results for the full year 2012 show that the company suffered on
account of cat loss as well as reserve charge undertaken in the
second quarter. The company is also progressing well with its
proposed merger with Bermuda reinsurance business of Canopius. We
believe the company is comfortably positioned for long-term
growth. However, temporary phenomenon, such as cat losses, will
continue to be a major headwind.
Tower currently retains a Zacks Rank # 2 (Buy).
Other companies in the same field,
The Travelers Companies Inc.
) all reported fourth quarter earnings ahead of the Zacks
ASSURANT INC (AIZ): Free Stock Analysis
CHUBB CORP (CB): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis
TOWER GROUP INC (TWGP): Free Stock Analysis
To read this article on Zacks.com click here.