TEXT-S&P rates Tower Group, subsidiaries 'BBpi'

Sept 18 - Rating Action
On Aug. 31, 2012, Standard & Poor's Ratings Services assigned its 'BBpi'
counterparty credit and financial strength ratings to Tower Insurance Co. Of
New York and CastlePoint National Insurance Co. At the same time, we assigned
our 'BBpi' financial strength rating to Castlepoint Insurance Co.

Rationale
The ratings reflect the companies' good capitalization and historically good
operating performance. The group has a sound investment strategy as well, and
invests assets primarily in high-grade bonds and short-term investments, which
comprise 85% of the investment portfolio. Offsetting these positive factors
are the group's geographic concentration, operating volatility, and
historically heavy reliance on reinsurance.

Through its subsidiaries, Tower Group Inc. offers a range of commercial,
personal, and specialty property and casualty insurance products and services
to both business and individual customers. It provides these products on both
admitted and excess-and-surplus bases. Tower Insurance Co. Of New York, Castle
Point National Insurance Co. and Castle Point Insurance Co. are the largest
property/casualty members of the group in terms of net earned premium,
contributing 37%, 18%, and 16%, respectively, of net earned premium in 2011.

Related Criteria And Research
Ratings Bearing A "pi" Subscript: Methodology And Assumptions, Feb. 9, 2011

Ratings List
New Rating
Tower Insurance Co. Of New York (Unsolicited Ratings)
CastlePoint National Insurance Co. (Unsolicited Ratings)
Counterparty Credit Rating
Local Currency BBpi
Financial Strength Rating
Local Currency BBpi

CastlePoint Insurance Co. (Unsolicited Ratings)
Financial Strength Rating
Local Currency BBpi

This unsolicited rating(s) was initiated by Standard & Poor's. It may be based
solely on publicly available information and may or may not involve the
participation of the issuer. Standard & Poor's has used information from
sources believed to be reliable based on standards established in our Credit
Ratings Information and Data Policy but does not guarantee the accuracy,
adequacy, or completeness of any information used.

Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings affected
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