Tower Group Inc. (NASDAQ:TWGP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0%.
Tower Group Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 14.29% to $0.56 in the quarter versus EPS of $0.49 in the year-earlier quarter.
Revenue: Rose 1.89% to $475.28 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Tower Group Inc. reported adjusted EPS income of $0.56 per share. By that measure, the company beat the mean analyst estimate of $0.54. It beat the average revenue estimate of $415.48 million.
Quoting Management: Michael H. Lee, President and Chief Executive Officer, said, “Tower is off to a strong start in 2013, marked by solid financial performance in the first quarter and the successful completion of our transformational merger. The merger enables us to realize our long-term vision of creating a global diversified insurance and reinsurance company with access to the world’s three key insurance markets – the U.S., Bermuda and London. It also fulfills an important strategic goal to enhance our business model by merging with a Bermuda-based international holding company and reinsurer to increase our profitability. We are already beginning to realize the benefit of this merger by operating our assumed reinsurance business from Bermuda as well as utilizing our Bermuda reinsurance company to provide an efficient source of reinsurance to support our growth in the U.S. We are also reviewing new growth opportunities utilizing our Bermuda reinsurance platform to develop new products and businesses to generate growth in the specialty insurance and reinsurance markets. In the U.S., we continued to implement changes to improve the performance of commercial and personal lines businesses and benefited from continued positive pricing trends across all of our product lines. We were also able to generate profitable organic growth by successfully implementing our organic growth initiative to develop new products, form new business units and identify new growth opportunities. With our new and improved business model resulting from the Canopius Bermuda merger, we are well positioned to continue making progress in successfully implementing our long-term business plan, including achieving higher returns in the remainder of 2013 and beyond.”
Key Stats (on next page)…