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USD ($)

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margin-bottom:12pt'&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;font-weight:bold;margin-left:0px;"&gt;N&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;font-weight:bold;"&gt;ote&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;font-weight:bold;"&gt; 4&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;font-weight:bold;"&gt;&amp;#8211;&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;font-weight:bold;"&gt;Variable Interest Entities&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;font-weight:bold;"&gt; (&amp;#8220;VIEs&amp;#8221;)&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:12pt'&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;margin-left:0px;"&gt;Through its management companies&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;,&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; Tower is the attorney-in-fact for &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;the Reciprocal Exchanges&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; and has the ability to direct their activities. &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;The &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;Reciprocal &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;Exchanges &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;are policyholder-owned insurance carriers organized as unincorporated associations. Ea&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;ch policyholder insured by the R&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;eciprocal&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; Exchanges&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; shares risk with the other policyholders. &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;In the event of dissolution, policyholders would share any residual unassigned surplus in the same proportion as the amount of insurance purchased but are not subject to assessment for any deficit in unassigned surplus of the Reciprocal Exchanges.&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;Tower receives &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;management fee income&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; for the services provided to the Reciprocal Exchanges.&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;The assets of the Reciprocal Exchanges can be used only to settle the obligations of the Reciprocal Exchanges and general creditors to their liabilities have no recourse with Tower as the primary beneficiary.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:12pt'&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;margin-left:0px;"&gt;In addition, Tower holds the surplus notes issued by the Reciprocal &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;Exchanges w&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;hen they were&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; originally capitalized.&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;The obligation to repay principal &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;and interest &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;on the &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;surplus &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;notes is subordinated to&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; the Reciprocal Exchanges'&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; other liabilities including obligations to policyholders and claimants for benefits under insurance policies.&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;Principal and interest on the surplus notes are repayable only with regulatory approval&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;.&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;The Company&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; has no ownership interest in &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;the Reciprocal Exchanges.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:12pt'&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;margin-left:0px;"&gt;T&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;he Company &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;determined that each of the R&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;eciprocal&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; Exchanges&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; qualifies as a VIE&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; and that the Company is &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;the primary beneficiary as it has both the power to direct the activities of the &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;Reciprocal Exchanges&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; that most significantly impact the&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;ir&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; economic performance and the obligation to absorb losses or receive benefits &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;from &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;the manag&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;ement services provided to the R&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;eciprocal&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; Exchange&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;s. Accordingly, &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;the Company&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; consolidates th&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;ese&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; R&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;eciprocal&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; Exchanges&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; and eliminates all intercompany balances and transactions with Tower&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;. &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:12pt'&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;margin-left:0px;"&gt;For the three months ended&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt; March 31&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;, the Reciprocal Exchanges recognized total revenues and total expenses of $&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;47.6&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;&amp;#160;&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;million and $&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;46.8&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;&amp;#160;&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;million, respectively, and had net income of $&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;0.8&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;&amp;#160;&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:9pt;"&gt;million.&lt;/font&gt;&lt;/p&gt;</NonNumbericText><NonNumericTextHeader>Note 4&amp;#8211;Variable Interest Entities (&amp;#8220;VIEs&amp;#8221;)Through its management companies, Tower is the attorney-in-fact for the Reciprocal Exchanges and</NonNumericTextHeader><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat><hasSegments>false</hasSegments><hasScenarios>false</hasScenarios></Cell></Cells><OriginalInstanceReportColumns /><Unit>Other</Unit><ElementDataType>us-types:textBlockItemType</ElementDataType><SimpleDataType>string</SimpleDataType><ElementDefenition>Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
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