Posted on 12 Aug 2010
Property-casualty insurer Tower Group Inc. reported that second-quarter earnings for the company declined by 7.7 percent in the wake of rising claims costs.
Property and casualty insurers have been battered recently by a variety of catastrophic losses stemming from everything from the weather to natural disasters. For its part, Chief Executive Michael H. Lee said the company saw first-quarter storm losses that were the worst in its 20-year history, prompting Tower to cut its full-year expectations.
The company didn't cite storm losses as a driver in the second quarter. Still, the combined ratio, or proportion of premiums paid out to claims and expenses, jumped to 93% from 84.6%. Tower didn't give specific reasons for the increase.
It reported a second-quarter profit of $28.3 million, down from $30.6 million a year earlier.
Total revenue jumped 22% to $311.8 million. Net premiums written rose 24%, while net investment income increased 37%.