Company release no. 9 / 2012 – Release of Annual Report 2011

Tower Group A/S 

08.05.2012 23:55
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Result of DKK -1,036.6 million after tax in 2011

Tower Group A/S announces its Annual Report 2011. The Annual Report 2011 is
attached to this announcement and is available on the Company's website,
www.towergroup.dk. 

Here are selected highlights:

  -- The Company's assets are from an accounting basis, treated as held for sale
     and the Company is no longer considered as a going concern.

  -- The Group's result of the period 1 January 2011 to 31 December 2011 was DKK
     -1,036.6 million. The result was negatively impacted by the revaluation of
     investment properties (DKK -215.7 million), the adjustments on financial
     instruments (DKK -332.6 million), and the deconsolidation of the insolvent
     subsidiaries representing 52% of the overall portfolio (DKK -244 million).

  -- With Company release no. 38, 23 November 2011, the Company announced result
     expectations for the period 1 January 2011 to 31 December 2011 on the basis
     of the implications of the insolvency situation in four subsidiaries, but
     with the rest of the Group continuing to operate as a going concern.  The
     Company expected at that time a loss - including anticipated losses on
     receivables from the four insolvent subsidiaries, but before tax and value
     adjustments to properties - in the range of DKK -250 to -300 million.

  -- Excluding the extraordinary items, the 2011 result is in the range
     announced in Company release no. 38, 23 November 2011.

  -- As a result of the insolvencies, the Company's assets are no longer held as
     a Going Concern, but as being held for sale.

  -- The Group's net result for 2011 was a loss of DKK 1,036.6 million - a
     decrease of DKK 1,126 million compared to the 2009/10 period (which was an
     18 month reporting period).

  -- Book value of the investment properties as per 31 December 2011 has, as a
     result of the assets being reclassified as being held for sale, been
     reduced to zero - compared to DKK 4,295.9 million as per December 31 2010.

  -- Assets being held for sale, excluding the insolvent subsidiaries, are
     valued at DKK 1,943.1 million as per 31 December 2011.

  -- The Company's balance sheet amounted to DKK 1,943.1 million as per 31
     December 2011 - compared to DKK 4,456.7 million as per 31 December 2010.

  -- The total equity as per 31 December 2011 amounts to DKK -178.3 million -
     compared to DKK 581.3 million as per 31 December 2010. During the financial
     year, the equity was negatively affected as a result of the revaluation of
     assets, the adjustment on financial instruments, and the deconsolidation of
     the insolvent subsidiaries.

  -- The Company expects that the consolidated result for 2012 will be the level
     of the negative equity at December 31 2011, i.e. DKK 178 million, which
     will leave the consolidated equity at DKK 0 million at year end 2012.

Chairman of the Board, Anton Aksich, comments: 'The result for the period 2011
is clearly disappointing. The Company is now focused on completing the
initiated sales process, which it anticipates to be able to complete by the end
of the 2nd quarter 2012, and related liquidation efforts, so as to recover as
much value as possible for all the stakeholders'. 



Best regards

Tower Group A/S



Anton Aksic

Chairman of the Board of Directors



Questions regarding this release can be directed to CEO, Martin Coté, on tel.:
+420 725 716 755.
News Source: NASDAQ OMX



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Language:     English
Company:      Tower Group A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0011188035
WKN:          
 
End of Announcement                             DGAP News-Service
 
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