Sector Update: Financial


Financial shares are mixed in today's pre-market session, taking a breather from yesterday's sharp selloff as the government shutdown continues to worry investors.

In stocks news, Tower Group International, Ltd. ( TWGP ) is down 28% at new 51-week lows of $6.58 after Fitch has issued an issuer default rating on the insurance holding company to B from BBB.

Separately, TWGP said has completed, with the assistance of its independent actuarial consultants, a comprehensive review of the company's loss reserves as of June 30, 2013. It will take a $215 million goodwill charge.

As a result of the review, the company expects to strengthen loss reserves by approximately $365 million (approximately $185 million of which was attributable to its U.S. Insurance subsidiaries), primarily for accident years 2009 through 2011 in commercial insurance lines of business, including workers' compensation, commercial multi-peril, commercial auto and other liability lines.

And, MGIC Investment Corporation ( MTG ) today issued an Operational Summary of its insurance subsidiaries for the month of September 2013 for their primary mortgage insurance. The company wrote $2.5 billion in new business.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: MTG , TWGP

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by