Fitch might lower Tower Group

Fitch Ratings said it placed the BBB issuer default rating of Tower Group International, Ltd., and the A- insurer financial strength ratings of Tower's operating subsidiaries, on Rating Watch Negative.

Fitch's said the action follows Tower's announcement that the company is delaying its second quarter SEC filings and earnings announcement to allow further time to review matters relating to its estimate of loss reserves and its allocation of goodwill and certain tax accounts.

The allocation issues are primarily due to the integration of the Canopius Bermuda merger. The company stated it cannot predict the length of time of its review.

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