Tower Group, Inc. (NASDAQ:TWGP) swung to a loss in the third quarter, missing analysts’ forecast. Reported a loss of $16.4 million (40 cents per diluted share) in the quarter. Tower Group, Inc. had a net income of $28.6 million or 66 cents per share in the year earlier quarter. TWGP fell short of the mean analyst estimate of a loss of 17 cents per share.
Michael H. Lee, President and Chief Executive Officer of Tower Group, Inc., said, “Irene delivered the single largest loss event in our twenty-year history, and led to our first quarterly loss since going public in 2004. In addition, we conducted a comprehensive review of our loss and loss expense reserves, including the reserves of the companies that we have acquired during the last few years. Based on this review, we made an adjustment to our reserves to reflect adverse development in commercial lines, including certain discontinued program business, which was partially offset by a release in reserves from the personal lines business. Despite these losses, we continue to see great strength in our core business, as reflected by the favorable combined ratio excluding these losses, strong organic growth from the newly created businesses, positive pricing trends and our declining expense ratio.”
Competitors to Watch: The Travelers Companies, Inc. (NYSE:TRV), W.R. Berkley Corporation (NYSE:WRB), The Progressive Corp. (NYSE:PGR), Markel Corporation (NYSE:MKL), American Financial Group (NYSE:AFG), RLI Corp. (NYSE:RLI), Harleysville Group Inc. (NASDAQ:HGIC), The Hanover Insurance Group, Inc. (NYSE:THG), and Selective Insurance Group (NASDAQ:SIGI).
Progressive Corporation (NYSE:PGR) reported its results for the fourth quarter. Net income for Progressive Corporation fell to $150.7 million (24 cents per share) vs. $261.1 million (40 cents per share) a year earlier. This is a decline of 42% from the year earlier quarter. Revenue total revenue rose 1% to $3.8 billion. PGR fell short of the mean analyst estimate of 38 cents per share. It beat the average revenue estimate of $3.41 billion.
Competitors to Watch: Safety Insurance Group, Inc. (NASDAQ:SAFT), The Allstate Corporation (NYSE:ALL), First Acceptance Corp. (NYSE:FAC), 21st Century Holding Co. (NASDAQ:TCHC), Tower Group, Inc. (NASDAQ:TWGP), Mercury General Corp. (NYSE:MCY), White Mountains Insurance Group, Ltd. (NYSE:WTM), Horace Mann Educators Corp. (NYSE:HMN), Infinity Property and Casualty Corp. (NASDAQ:IPCC), and Gainsco, Inc. (AMEX:GAN).