In a development Tower Group International, Ltd.’s president and chief executive officer Michael Lee said made them “disappointed”. the company announced this week that it is postponing the release of its financial results for the second quarter of 2013 and its previously announced conference call to discuss the results, originally scheduled for Thursday.The company stated yesterday that they currently expect to announce its results for the second quarter of 2013 within 30 days.In the release initially reporting the postponement, management said that it concluded additional time is needed to review matters relating to the estimate of its loss reserves and, primarily due to the integration of their merger with Canopius Bermuda, its allocation of goodwill and certain tax accounts.Mr Lee said: “We are disappointed that we were not able to timely complete our closing for the second quarter to announce these results, but we believe our post-merger plan is working and will eventually allow us to achieve our long-term financial objectives.”They stated that they: “ ... are working to resolve the matters with the assistance of outside professionals. The company cannot currently predict the length of time of its review. But yesterday they made the announcement that they expect to provide their results within a month.The company noted it expects to file a Form 12b-25 (Notification of Late Filing) with the United States Securities and Exchange Commission, as it does not expect to file its report on Form 10-Q for the quarter ended June 30, 2013 by the required filing date of today.After announcing the postponement of the conference call, Tower released the second report providing guidance with regard to its second quarter results. It stated: “Loss reserves. The company has retained an independent actuarial firm to review selected areas of the company’s loss reserves as of June 30, 2013. This review process by an independent actuarial firm is typically conducted at year-end, but the company will use the report of the outside actuarial firm in connection with establishing its loss reserves as of June 30, 2013. Based upon currently available information, the company could record adverse reserve development of $60 million to $110 million pre-tax.“Taxes. Losses in the company’s US operations are generally offset by a tax benefit of 35 percent of such loss. Based upon currently available information, the company expects that 60 percent of anticipated losses from adverse loss reserve development will come from its US-taxed businesses. The expected tax benefit from such US losses will not be realised in the second quarter, but will only be recognised if the company generates additional earnings in its US businesses. The company would use any such tax benefits to offset future US taxable earnings and capital gains from the anticipated rebalancing of the company’s fixed income investment assets consistent with its new corporate structure.“Goodwill. The company revised its segment reporting in the second quarter of 2013 to reflect the changes to its corporate structure after the merger with Canopius Bermuda. As a result of this change in segment reporting, goodwill has been allocated to each business segment. To the extent that the loss reserve adjustment adversely impacts one segment, goodwill associated with that segment may be impaired, and a non-cash charge for such goodwill would be recorded. This analysis and charge, if any, will be calculated upon the completion of the reserve review.“Net Income. The company’s operating results for the quarter will be driven by strong operating results from its Bermuda operations offset by the anticipated reserve strengthening. The company will not record any tax benefit during the quarter to offset the anticipated losses in the US. The company believes that at a reserve adjustment of $60 million, it would record operating earnings of between $. 15 and $. 20 per share, including a deferred tax valuation allowance of between $. 35 and $. 40 per share, and at a charge of $110 million its operating loss would be between $. 80 and $. 85 per share, including a deferred tax valuation allowance of between $. 18 and $. 23 per share. These estimates exclude the non-cash effect of any goodwill impairment.Mr Lee said: said, “During the second quarter, we continued to realise benefits from the Canopius Bermuda merger and our ongoing post-merger plan to enhance Tower’s business model to position the company for long-term growth and increased profitability. We expect our results for the quarter to be driven by the strong growth and profitability of our newly established Bermuda operation.“In the US, our proposed actions in the second quarter reflect our commitment to position our Company for long-term profitability. We expect this action will result in a tax benefit in the US, which we will not record in the second quarter, but may be able to offset against any future profits from our US operations as well as future capital gains.“In summary, we believe the strong profitability of our Bermuda operations and tax benefits generated by the loss reserve strengthening in the U.S, which we expect to gradually utilise in the future, will allow us to strengthen the Company.”