What Tower Group International, Ltd. (NASDAQ:TWGP) Results Say?
Late last week on Friday, Tower Group International, Ltd. (NASDAQ:TWGP) announced its financial results for the 2Q13 and 1H13. The results reflect the merger between Tower Group, Inc. and Canopius Holdings Bermuda Limited following the March 13, 2013 which was renamed Tower Group International, Ltd. (NASDAQ:TWGP) upon merger completion.
2Q13 Earnings Highlights
2Q13 total revenues were $460.5 million as compared with $506.4 million in 2Q12, mainly because of lower earned premiums and investment income. Net investment income for 2Q13 was $28.4 million as compared with $31.8 million in prior year quarter.
The company reported net loss of $507.3 million for 2Q13 that translates to $8.88 on per share basis as compared with net loss of $16.8 million or just about $0.39 on per share basis for 2Q12. Operating loss in 2Q13 was $291.1 million or $5.1 per share as compared with an operating loss of $17.3 million or $0.4 per share in 2Q12.
Earnings per share reflect Tower Group International, Ltd. (NASDAQ:TWGP)’s post-merger shares. Diluted weighted average shares outstanding were 57.1 million in 2Q13 and 43.3 million in 2Q12. The company’s shareholders’ equity was $579.2 million as at June 30, 2013 as compared to $950.1 million as at December 31, 2012.
Form 10-Q filing
In other update related to investment and insurance sector, ING US Inc. (NYSE:VOYA) filed “Management’s Discussion and Analysis of Results of Operations and Financial Condition” for 3Q13 and nine months period ended September 30, 2013.
The management mentioned about revenue declines due to increased outflows and reduced sales and significant impact on financial performance that could be adversely affected by market volatility as fees through AUM (Assets Under Management) fluctuate and hedging costs increases. The current low interest rate environment has affected the demand for company’s products in many ways and given the management’s estimate it may continue to affect the same way for some more time.