EXHIBIT 99.1

Tower Group, Inc. Announces Quarterly Dividend

    NEW YORK--(BUSINESS WIRE)--Feb. 28, 2005--Tower Group, Inc.
(NASDQ: TWGP) announced today that the company's Board of Directors
has approved a quarterly dividend of $ 0.025 per share payable March
25, 2005 to stockholders of record as of March 15, 2005.

    About Tower Group, Inc.

    In operation since 1990, Tower Group Inc. is headquartered in New
York City and is the holding company for its two operating
subsidiaries, Tower Insurance Company of New York, ("TICNY") and Tower
Risk Management ("TRM"). TICNY, A.M. Best rated A- (Excellent),
develops and delivers specialized commercial lines insurance products
that provide property, liability, workers' compensation and automobile
insurance to select markets not well served by other carriers. It also
offers personal lines products that provide property and liability
insurance to homeowners throughout New York State. TRM, a non- risk
bearing insurance service company, offers managing general agency
services to underwrite risks, adjust claims and negotiate reinsurance
terms on behalf of other insurance companies. For more information
visit Tower's website at http://www.twrgrp.com/.

    CONTACT: Investor Relations
             Tower Group, Inc.
             Andrew Colannino, 212-655-2107
             Email: acolannino@twrgrp.com