Assets
Investments
Tower
1,218 1,307 1,500 1,736 2,184 2,306 2,210 2,262 2,189 2,267 2,241 2,248 2,244 2,133
Reciprocal Exchanges
234 210 255 252 257 274 286 309 307 300 302 317 302 341
Total investments
1,452 1,517 1,755 1,988 2,440 2,580 2,496 2,571 2,496 2,566 2,543 2,565 2,546 2,479 2,474 2,574 1,723
Available-for-sale investments, at fair value:
Fixed-maturity securities
Variable Interest Enterprise Member
287 341 317
Tower
8 6 2,155 2,145 23
Tower
1,203 1,244 1,390 1,624 2,036 2,137 2,064 2,134 2,061 2,155 2,154 2,042
Reciprocal Exchanges
231 207 253 250 254 271 281 303 299 293 300 315 300 341
Total fixed-maturity securities
1,434 1,451 1,643 1,874 2,290 2,408 2,345 2,437 2,360 2,448 2,454 2,470 2,445 2,096 2,383 2,190 1,686
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Equity securities
Variable Interest Enterprise Member
2 0
Tower
10 90 94 90
Tower
13 60 104 105 135 140 141 124 128 112 87 90
Reciprocal Exchanges
3 3 3 3 3 3 6 6 8 7 2 2 2
Total equity securities
93 90 40 37
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Short-term investments
Tower
2 2 6 6 13 29 5 5
Total short-term investments
10 3 5 0 2 27 0
Other invested assets
Tower
2 10 16
Tower
56 55 96 98 77 59 58 54 52 48 44
Total other invested assets
54 44 16
Total investments
1,508 1,571 1,851 2,085 2,517 2,639 2,554 2,625 2,549 2,614 2,587 2,581 2,474
Cash and cash equivalents
Variable Interest Enterprise Member
1 3 12
Tower
0 17 13 3
Reciprocal Exchanges
17 44 6 12 13 6 10 11 7 20 1 2 23 3
Total cash and cash equivalents
265 455 294 380 100 211 84 179 199 143 107 148 113 113 140 118 348
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Investment income receivable
Variable Interest Enterprise Member
3 3 1
Reciprocal Exchanges
2 2 2 2 3 3 3 3 3 3 3 3 3 3
Total investment income receivable
10 12 17 20 26 29 25 30 27 30 27 26 26 26 24 26 19
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Investment in unconsolidated affiliate
Tower
1,282 1,271 1,213
Total investment in unconsolidated affiliate
77 76 68 72 72
Premiums receivable
Variable Interest Enterprise Member
37 54 36
Reciprocal Exchanges
43 44 42 49 45 44 44 40 39 39 44 41 39 54
Total premiums receivable
267 274 309 388 392 418 412 367 382 416 426 415 386 364 388 361 309
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Reinsurance recoverable on paid losses
Variable Interest Enterprise Member
2 2 7
Tower
67 17 18 16
Reciprocal Exchanges
3 1 2 4 7 6 1 2 2 3 6 2 3 2
Total reinsurance recoverable on paid losses
51 37 69 86 27 50 18 20 19 25 24 19 26 20 18 27 15
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Reinsurance recoverable on unpaid losses
Variable Interest Enterprise Member
12 15 17
Reciprocal Exchanges
14 15 15 22 25 28 52 19 20 23 11 18 15 11
Total reinsurance recoverable on unpaid losses
455 389 571 595 690 887 459 314 302 285 320 345 279 290 283 300 238
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Prepaid reinsurance premiums
Variable Interest Enterprise Member
16 18 17
Reciprocal Exchanges
22 22 22 23 20 18 18 18 16 15 15 18 14 18
Total prepaid reinsurance premiums
463 481 186 218 126 234 64 63 56 53 54 54 50 63 78 91 68
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Deferred income taxes
Variable Interest Enterprise Member
1
Tower
17 245 142 153 124 118
Reciprocal Exchanges
4 9 8 0 0 10
Total deferred income taxes
21 238 135 162 132 0 128 0 25
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Deferred acquisition costs, net
Tower
85 170 157 146
Reciprocal Exchanges
11 8 10 11 10 10 11 13 13 12 12 14 15 18
Variable Interest Enterprise Member
14 18 19
Total deferred acquisition costs, net
11 22 95 150 193 199 181 190 186 172 169 178 167 161 164 231 184
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Intangible assets
Variable Interest Enterprise Member
5 6 6
Tower
74 100 110 118
Reciprocal Exchanges
6 6 6 6 7 7 7 7 7 7 5 5 5 6
Total intangible assets
79 80 80 80 100 105 107 109 111 111 115 117 119 122 124 115 51
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Goodwill
0 0 56 270 241 250 250 250 241 250 250 250 246 249 244
Fixed assets, net of accumulated depreciation
139 79
Funds held by reinsured companies
77 88 99 192 890 830 138 124 134 70
Other assets
Variable Interest Enterprise Member
15 6 8
Tower
69 46 34
Reciprocal Exchanges
1 2 1 2 2 6 2 4 4 4 3 8 6 6
Total other assets
266 309 383 363 466 430 358 321 270 357 306 265 304 284 230 198 78
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Tower
1,468 1,363 1,284
Total assets
3,452 3,719 3,956 24 5,668 6,389 4,713 4,664 4,484 4,456 4,454 4,347 4,214 4,131 4,175 4,289 3,380
Liabilities
Loss and loss adjustment expenses
Tower
1,551 1,418 1,435 1,451
Tower
1,887 1,944 1,974 1,987 2,433 2,303 1,760 1,599 1,568 1,455 1,496 1,551 1,418 1,455 1,439
Reciprocal Exchanges
100 101 107 112 119 128 136 123 134 143 136 147 167 162 171 181
Variable Interest Enterprise Member
162 175 181
Total loss and loss adjustment expenses
1,988 2,044 2,081 2,098 2,552 2,431 1,896 1,722 1,702 1,597 1,632 1,698 1,585 1,617 1,610 1,632 1,188
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Unearned premium
Variable Interest Enterprise Member
108 124 111
Reciprocal Exchanges
107 105 106 110 102 100 103 104 103 100 103 106 103 124
Total unearned premium
641 686 763 960 999 1,123 921 927 926 897 893 920 860 838 872 873 631
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Reinsurance balances payable
Variable Interest Enterprise Member
1 3 10
Reciprocal Exchanges
6 5 5 4 7 6 7 4 5 5 3 0 3 3
Total reinsurance balances payable
158 203 90 385 46 39 41 21 14 19 21 23 20 18 35 57 49
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Funds held under reinsurance agreements
Reciprocal Exchanges
0 0 0 0 0 0 1 0
Total funds held under reinsurance agreements
82 81 222 216 657 634 99 89 91 96 97 102 102 100 93 78 69
Other liabilities
Variable Interest Enterprise Member
13 9 23
Reciprocal Exchanges
19 17 17 18 11 46 21 47 8 25 10 13 14 9
Total other liabilities
189 257 286 279 351 463 297 316 195 273 289 153 153 94 122 144 82
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Deferred income taxes (includes $1,070 and $0 relating to Reciprocal Exchanges)
Variable Interest Enterprise Member
1 4 5
Tower
28 158 139 117
Reciprocal Exchanges
23 29 27 9
Total deferred income taxes (includes $1,070 and $0 relating to Reciprocal Exchanges)
50 187 165 4 126 4
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Deferred income taxes
Tower
(16) (3) 2
Tower
17 14 (1)
Reciprocal Exchanges
19 19 19 20 20 20 20 7 3 (2) 19 5 4 (1)
Total deferred income taxes
30 30 30 20 20 30 25 49 33 32 33 5 16 (2)
Debt
Tower
381 281 228
Total debt
384 384 383 452 451 450 450 449 448 428 427 396 376 392 374 374 291
Subordinated debentures
235 235 235 235 235 235 235 235 235 235 235 235 235 235
Tower
487 329 239
Total liabilities
3,472 3,685 3,855 24 5,077 5,170 3,728 3,546 3,410 3,342 3,392 3,296 3,110 3,063 3,107 3,162 2,310
Shareholders' equity
Common stock ($0.01 par value; 150,000,000 shares authorized, 57,437,157 and 57,437,157 shares issued, and 57,297,589 and 57,381,686 shares outstanding)
1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0
Treasury stock (139,568 and 55,471 shares)
(0) (0) (0) (0) (0) (181) (181) (181) (160) (158) (144) (113) (111) (92) (87) (51)
Paid-in-capital
815 815 815 815 813 812 780 778 776 775 773 771 768 765 763 760 756
Accumulated other comprehensive loss
(31) (32) (20) (8) 9 78 83 96 76 73 63 49 56 43 49 88 59
Retained earnings (accumulated deficit)
(796) (747) (701) (600) (243) 306 268 362 348 370 356 337 361 345 324 334 305
Tower Group International, Ltd. shareholders' equity (deficit)
Tower
981 1,034 1,045
Total tower Group International, Ltd. shareholders' equity (deficit)
(11) 36 96 208 579 1,197 950 1,055 1,018 1,058 1,034 1,014 1,073 1,043 1,045 1,094 1,070
Noncontrolling interests
(10) (2) 5 15 12 22 34 64 55 55 27 38 31 24 23 33
Total shareholders' equity (deficit)
(21) 34 101 223 591 1,186 984 1,075 1,029 1,091 1,037 1,051 1,104 1,068 1,039 1,084 1,034
Liabilities and shareholders' equity (deficit)
Tower
1,468 1,363 1,284
Total liabilities and shareholders' equity (deficit)
3,452 3,719 3,956 4,633 5,668 6,389 4,713 4,664 4,484 4,456 4,454 4,347 4,214 4,131 4,175 4,289 3,380
