Tower Group has reported revenues of $271.4m for the fourth quarter of 2009, an increase of 98.7% compared to $136.4m in the same period last year.
The company’s gross premiums written for the quarter increased to $327.2m from $176.5m. Net premiums written increased to $205.4m from $78.4m. Operating income increased 67% for the fourth quarter to $31.9m from $19m in the same period last year.
For the fourth quarter ended December 31, 2009, the company posted net income of $30.7m, or $0.72 per share compared to $15.73m, or $0.67 per share for the same period last year.
Combined brokerage and specialty segments net premiums earned were increased to $233.1m for the fourth quarter, from $87.76m, while brokerage insurance segment net premiums earned were $150.2m, and specialty insurance net premiums earned increased to $82.91m from $6.64m in the same period last year.
For the full year 2009, the company has reported revenues of $983.1m compared to $484.4m in 2008. Operating income increased 79% to $119.8m from $66.8m in 2008. Net income in 2009 was $109.3m, or $2.76 per share compared to $57.4m, or $2.45 per share in 2008.
Michael Lee, president and CEO of Tower Group, said: “In 2009, we successfully executed on our strategy to improve our business franchise by significantly increasing our capitalization, further diversifying our product offerings and expanding geographically.
“In addition, we were able to create value for our shareholders by significantly increasing our book value per share and increasing our earnings per share despite the increased number of shares outstanding as a result of the CastlePoint and SUA acquisitions.”
Tower expects first quarter 2010 operating earnings per share to be in a range of $0.65 to $0.70. For the full year 2010, operating earnings per share are expected to be in a range between $3 and $3.20.