Dallas, Texas 12/09/2013 (Financialstrend) – Tower Group International, Ltd. (NASDAQ:TWGP) which faced severe losses in the Q2 has started resorting to job cuts and recently cut about 140 jobs. The company is planning to cut its 10 percent workforce after it posted a loss of more than $0.5 billion for the 2nd Quarter of the current year. All the job cuts will be made in the operations and commercial underwriting department as the company aims to save around $21 million by doing these job cuts.
The net loss faced by the common share holders is estimated to be $507.3 million or we can say that $8.88 per share. The same quarter for the year 2012 witnessed a loss of about $16.8 million or we can say that 39 cents per share. The chairman, president and the CEO Mr. Michael H. Lee said that they are deeply disappointed by their second quarter operating results which includes reverse charges as well financial report delay.
Something about the reverse strengthening
According to Tower Group International, Ltd. (NASDAQ:TWGP), the reverse strengthening came from different types of businesses that they underwrote from 2008 to 2011. The company started rewriting this business in 2010 and helped them to increase their reserve position significantly it the 2nd quarter. As per Mr. Lee they will keep on trying to review the options and strategies that are available with them and hope to comeback with strong numbers in the coming future. They are also trying to sale some of their holding company shares to solve the problem of liquidity. The company might also plan to raise some additional capital and are working hard to gain as much as momentum they can.
This is the reason the company is also looking for some strategic partners so that they can post good numbers and earn profits.
