News
Tower Downgraded by A.M. Best
Bulletin – Tuesday, December 24, 2013
Tower Group Companies Downgraded by A.M. Best
A M Best has downgraded the financial strength rating (FSR) to B (Fair) from B++ (Good) for Tower Group International and subsidiaries. The Best announcement dated December 20, 2013 indicates the ratings remain under review with negative implications. This most recent action follows another downgrade action by A.M. Best on October 8, 2013. Best cites the strengthening of reserves as the primary reasons for both actions. Click here for a copy of the Best October press release.
In a letter dated December 18, 2013 Tower Chairman, President and CEO Michael H. Lee indicates “In addition to satisfying our short-term liquidity needs, we are also working diligently on evaluating alternatives and developing a long-term strategic plan. I am confident that we will be able to enhance our ability to be responsive to your needs. We will continue to update you on our progress.” For a history of Tower Press Releases please click here.
The following links offer further explanation on Tower’s sale of a subsidiary as well as a copy of their second quarter financial data:
Tower Group International, Ltd. Reports Second Quarter 2013 Results (11/22/2013)
The W. N. Tuscano Agency has made the decision to cease placing new business with Tower effective immediately and withdraw any outstanding new business quotes. If your new business account is still active and you need to secure an alternate quote, please contact your Tuscano Underwriter for options.
Policies currently placed with Tower will be offered renewal along with alternative market options. You should carefully review your agency E&O coverage for possible coverage exclusions and agency internal guidelines prior to placing renewal coverage with Tower.
If you have questions or wish to discuss this matter further, please do not hesitate to contact myself or a member of the Tuscano management team.