Fitch: Tower unchanged

Fitch Ratings said it assigned an A- insurer financial strength rating to Castlepoint Insurance Co. and Kodiak Insurance Co.

The outlook is stable.

Fitch said it has taken no rating action on the BBB issuer default rating of Tower Group, Inc., nor has it taken action on the A- insurer financial strength ratings of Tower's other operating subsidiaries.

Although no rating action was taken, Fitch said that Tower's ratings are based on a rating rationale that includes Tower's solid profitability, multi-tiered approach to underwriting, history of modest reserve development and a well diversified investment portfolio that has an average credit rating of AA-.

Also factored into the ratings is the company's appetite for growth via acquisitions and an elevated catastrophe profile given the company's concentration in New England and New York markets, the agency said.

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