2.2.0.25falsefalse006003 - Statement - Acquisitionstruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) $FROM_Jan01_2011_TO_Mar31_2011http://www.sec.gov/CIK0001289592duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0twgp_AcquisitionsAbstracttwgpfalsenadurationAcquisitions.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringAcquisitions.falsefalseAcquisitions [Abstract]3false0us-gaap_BusinessCombinationDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00Note 3—AcquisitionsAcquisition of the Renewal Rights of AequiCap Program Administrators Inc. (“AequiCap”)On November 2, 2010, Tower acquired the renewal rights to the commercial automobile liability and physical damage business of AequiCap for $12 million (“AequiCap”). The business subject to the agreement covers both trucking and taxi risks that are consistent with Tower's current underwriting guidelines. Most of the employees of AequiCap involved in the servicing of this commercial liability and physical damage business became employees of the Company. The acquisition was accounted for as a business combination under GAAP. Acquisition of the OneBeacon Personal Lines Division (“OBPL”)On July 1, 2010, Tower completed the OBPL acquisition pursuant to a definitive agreement (the “Agreement”) dated February 2, 2010 by and among the Company and OneBeacon Insurance Group (“OneBeacon”). This acquisition expanded Tower's suite of personal lines insurance products to include private passenger automobile, homeowners, umbrella, and the signature package product, OneChoice CustomPac, which provides customers with one policy for all of their homeowners, auto and umbrella needs.Under the terms of the Agreement, the Company acquired Massachusetts Homeland Insurance Company (“Homeland”), York Insurance Company of Maine (“York”) and two management companies (collectively the “Stock Companies”). The management companies are the attorneys-in-fact for Adirondack Insurance Exchange, a New York reciprocal insurer, and New Jersey Skylands Insurance Association, a New Jersey reciprocal insurer (together, the “Reciprocal Exchanges”). Tower purchased $102 million principal of surplus notes issued by the Reciprocal Exchanges (the “surplus notes”). In addition, Tower reinsured the personal lines business written by other subsidiaries of OneBeacon not acquired by Tower. The total consideration paid for OBPL was $167 million. Effective July 1, 2010, Tower entered into transition service agreements with OneBeacon whereby OneBeacon will provide certain information technology and operational support to Tower until such time that these processes are migrated to Tower. Expenses incurred under such transition service agreements were $6.6 million for the three months ended March 31, 2011.Tower has consolidated OBPL as of July 1, 2010 and the purchase consideration has been allocated to the assets acquired and liabilities assumed, including separately identified intangible assets, based on their fair values as of the close of the acquisition, with the amounts exceeding the fair value recorded as goodwill. The goodwill consists largely of the synergies and economies of scale expected from combining the operations of the Company and OBPL. Direct costs of the acquisition were accounted for separately from the business combination and were expensed as incurred. As the values of certain assets and liabilities are preliminary in nature, they are subject to adjustment as additional information is obtained, including, but not limited to, valuation of separately identifiable intangibles, fixed assets, deferred taxes and loss reserves. The valuations will be finalized within 12 months of the close of the acquisition. When the valuations are finalized, any changes to the preliminary valuation of assets acquired or liabilities assumed may result in adjustments to separately identifiable intangible assets and goodwill.For the three months ended March 31, 2011, OBPL contributed revenue and earnings to the Company from its acquisition date as follows:<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 504px; text-align:left;border-color:#000000;min-width:504px;"> </td><td colspan="4" style="width: 121px; text-align:center;border-color:#000000;min-width:121px;"> Three Months Ended</td></tr><tr style="height: 17px"><td style="width: 504px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:504px;">($ in thousands)</td><td colspan="4" style="width: 121px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:121px;">March 31, 2011</td></tr><tr style="height: 15px"><td style="width: 504px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:504px;">Total revenue</td><td style="width: 18px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:18px;"> </td><td style="width: 10px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:10px;">$</td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 99,081</td><td style="width: 18px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:18px;"> </td></tr><tr style="height: 15px"><td style="width: 504px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:504px;">Net income</td><td style="width: 18px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:18px;"> </td><td style="width: 10px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"> 2,950</td><td style="width: 18px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:18px;"> </td></tr></table></div>Note 3—AcquisitionsAcquisition of the Renewal Rights of AequiCap Program Administrators Inc. (“AequiCap”)On November 2, 2010, Tower acquiredfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDescription of a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. This element may be used as a single block of text to encapsulate the entire disclosure (including data and tables) regarding business combinations, including leverage buyout transactions (as applicable).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 51, 52 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 88-16 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph 67-73 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph F4 -Subparagraph e -Appendix F falsefalseAcquisitions12AcquisitionsUnKnownUnKnownUnKnownUnKnownfalsetrue