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Tower adds $365 million to reserve

Insurer Tower Group said Monday it will add $365 million to its loss reserves and will take a $215 goodwill impairment charge. Its stock tumbled more than 25 percent in extended trading.

By The Associated Press | Updated on October 07, 2013

NEW YORK (AP) — Insurer Tower Group said Monday it will add $365 million to its loss reserves and will take a $215 goodwill impairment charge. Its stock tumbled more than 25 percent in extended trading.

Tower Group said it is taking the $365 million charge after conducting a review of its loss reserves with its independent actuarial consultants. It found additional losses and changes in judgment. The charge covers several different commercial lines of business including workers’ compensation, multi-peril insurance, and auto insurance. The results include $185 million in losses from its U.S. insurance businesses. Most of the losses took place between 2009 and 2011.

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