Boston, MA 10/14/2013 (wallstreetpr) – Despite a surge in recent times that saw the Tower Group International, Ltd. (NASDAQ:TWGP)’s share volumes plunge immensely to sell at below $8, it was only unfathomable of a company with the reputation of the Tower Group Limited not to bounce back. In recent days the company’s fortunes have turned around and it’s set to make very strong gains in the stock market.
The turnaround has been fueled by the company’s management to review the company’s loss reserve in a bid to strengthen the finances both now and in the future in the event that the same occurrences rear their ugly head again. With the help of independent actuarial consultants, the company has been able to completely overhaul their loss reserves. In the near future the company is expected to inject up to $365 million in their loss reserve in order to strengthen its loss revenue base.
The $185 million of the subjected $365 million comes in as a portion from part of its US subsidiary insurance companies. Along with the strengthening of the loss reserves, the company has also had a hit at its good-will impairment program. For the second quarter of the year 2013, the company projects to report about $215 million in non-cash good-will impairment charge.
The company’s latest shift in the business lines has been largely to blame for the weakness in the loss reserves. The past measure that contributed to the company’s strong reserves have been changed overtime and thus left the company susceptible to losses that come with enrolling in the stock market.
However given the latest trends regarding the consultations and subsequent adjustments, the company is set to make a full recovery and is expected to make its full report of the second quarter of the current year once the evaluations of the results is complete. This together with the planned overhaul of the finance strategy is set to help the company bounce back with a bang.