Tower Group Inc. (TWGP, Financial) filed Quarterly Report for the period ended 2011-09-30.
Tower Group Inc. has a market cap of $969.2 million; its shares were traded at around $23.51 with a P/E ratio of 8.6 and P/S ratio of 0.7. The dividend yield of Tower Group Inc. stocks is 3.2%. Tower Group Inc. had an annual average earning growth of 19.8% over the past 5 years.
Net income and return on average equity. Net income attributable to Tower Group, Inc. and annualized return on average equity were $33.4 million and 4.3% for the nine months ended September 30, 2011 compared to $67.3 million and 8.9% for the same period in 2010. The decrease in the net income and annualized return on equity in 2011 is primarily due to the catastrophe and severe storm losses in the three months ended September 31, 2011. These losses are offset by increases total revenues attributed to the acquisition of OBPL, which was not included in the Companys results during the first six months of 2010.
Renewal retention rate excluding programs declined to 76.8% for the three months ended September 30, 2011 compared to 80.0% during the same period in 2010 because we did not renew certain unprofitable business in 2011. Premiums on renewed commercial business, other than programs, increased 1.3% and 1.2% for the three and nine months ended September 30, 2011, respectively. Excluding programs, policies in-force for our commercial business increased by 1.7% as of September 30, 2011 from December 31, 2010.
Ceding commission revenue. Ceding commission revenue decreased for the three and nine months ended September 30, 2011 by $7.7 million and $17.6 million, respectively, as compared to the same periods in 2010. The decrease was a result of the cancellation of our liability quota share contract. Ceding commission revenue was also reduced by $2.0 million and $1.1 million in the three and nine months ended September 30, 2011, respectively, as a result of change in loss ratios on prior years quota share treaties compared to $0.7 million and $2.1 million for the same periods in 2010.
Underwriting profit and combined ratio. The net combined ratios were 108.9% and 100.6% for the three and nine months ended September 30, 2011, respectively, and 97.2% and 96.4% for the same periods in 2010. The increase in the combined ratio for the three months ended September 30, 2011 resulted from an increase in the net loss ratio and a decrease in the net expense ratios as described above.
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Tower Group Inc. has a market cap of $969.2 million; its shares were traded at around $23.51 with a P/E ratio of 8.6 and P/S ratio of 0.7. The dividend yield of Tower Group Inc. stocks is 3.2%. Tower Group Inc. had an annual average earning growth of 19.8% over the past 5 years.
Highlight of Business Operations:
Total revenues increased by 27.2% for the nine months ended September 30, 2011 as compared to the same period in 2010, primarily due to increased net premiums earned and net investment income resulting from the acquisition of OBPL. OBPL was acquired effective July 1, 2010, and was not included in the Companys results for the first six months of 2010. Net realized gains (losses) on investments decreased $2.4 million for the nine month period ended September 30, 2011, as compared to the same period in 2010.Net income and return on average equity. Net income attributable to Tower Group, Inc. and annualized return on average equity were $33.4 million and 4.3% for the nine months ended September 30, 2011 compared to $67.3 million and 8.9% for the same period in 2010. The decrease in the net income and annualized return on equity in 2011 is primarily due to the catastrophe and severe storm losses in the three months ended September 31, 2011. These losses are offset by increases total revenues attributed to the acquisition of OBPL, which was not included in the Companys results during the first six months of 2010.
Renewal retention rate excluding programs declined to 76.8% for the three months ended September 30, 2011 compared to 80.0% during the same period in 2010 because we did not renew certain unprofitable business in 2011. Premiums on renewed commercial business, other than programs, increased 1.3% and 1.2% for the three and nine months ended September 30, 2011, respectively. Excluding programs, policies in-force for our commercial business increased by 1.7% as of September 30, 2011 from December 31, 2010.
Ceding commission revenue. Ceding commission revenue decreased for the three and nine months ended September 30, 2011 by $7.7 million and $17.6 million, respectively, as compared to the same periods in 2010. The decrease was a result of the cancellation of our liability quota share contract. Ceding commission revenue was also reduced by $2.0 million and $1.1 million in the three and nine months ended September 30, 2011, respectively, as a result of change in loss ratios on prior years quota share treaties compared to $0.7 million and $2.1 million for the same periods in 2010.
Underwriting profit and combined ratio. The net combined ratios were 108.9% and 100.6% for the three and nine months ended September 30, 2011, respectively, and 97.2% and 96.4% for the same periods in 2010. The increase in the combined ratio for the three months ended September 30, 2011 resulted from an increase in the net loss ratio and a decrease in the net expense ratios as described above.
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