Exhibit 99.1

Tower Group, Inc. Reports on Annual Meeting of Stockholders

    NEW YORK--(BUSINESS WIRE)--May 20, 2005--Tower Group, Inc.
(NASDAQ:TWGP) reports today on the results of its Annual Meeting of
Stockholders held on May 19, 2005 in New York City. President and CEO
Michael H. Lee presided over the meeting. The first proposal to
re-elect Michael H. Lee, Steven W. Schuster and Gregory T. Doyle to
serve as directors on the Board of Tower Group until the 2008 annual
meeting of stockholders and until their successors are elected and
qualified, was duly approved by stockholder vote. The stockholders
also approved the appointment of the firm of Johnson Lambert & Co.,
which served as the Company's independent registered public accounting
firm for 2004, to serve as the Company's independent registered public
accounting firm for 2005.

    About Tower Group, Inc.

    Tower Group, Inc., headquartered in New York City, offers property
and casualty insurance products and services through its insurance
company and insurance service subsidiaries. Its insurance company
subsidiary, Tower Insurance Company of New York, is rated A-
(Excellent) by A.M. Best Company and offers commercial insurance
products to small to medium-size businesses and personal insurance
products to individuals. Its insurance services subsidiary, Tower Risk
Management, acts as a managing general agency, adjusts claims and
negotiates reinsurance terms on behalf of other insurance companies.
In March 2005, Tower Group, Inc. acquired its other insurance company
subsidiary, Tower National Insurance Company (f/k/a North American
Lumber Insurance Company).

    Cautionary Note Regarding Forward-Looking Statements

    The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward-looking statements. This release or any
other written or oral statements made by or on behalf of the Company
may include forward-looking statements that reflect the Company's
current views with respect to future events and financial performance.
All statements other than statements of historical fact included in
this release are forward-looking statements. Forward-looking
statements can generally be identified by the use of forward-looking
terminology such as "may," "will," "plan," "expect," "intend,"
"estimate," "anticipate," "believe" or "continue" or their negative or
variations or similar terminology. All forward-looking statements
address matters that involve risks and uncertainties. Accordingly,
there are or will be important factors that could cause our actual
results to differ materially from those indicated in these statements.
We believe that these factors include but are not limited to
ineffectiveness or obsolescence of our business strategy due to
changes in current or future market conditions; increased competition
on the basis of pricing, capacity, coverage terms or other factors;
greater frequency or severity of claims and loss activity, including
as a result of natural or man-made catastrophic events, than our
underwriting, reserving or investment practices anticipate based on
historical experience or industry data; the effects of acts of
terrorism or war; developments in the world's financial and capital
markets that adversely affect the performance of our investments;
changes in regulations or laws applicable to us, our subsidiaries,
brokers or customers; acceptance of our products and services,
including new products and services; changes in the availability, cost
or quality of reinsurance and failure of our reinsurers to pay claims
timely or at all; decreased demand for our insurance or reinsurance
products; loss of the services of any of our executive officers or
other key personnel; the effects of mergers, acquisitions and
divestitures; changes in rating agency policies or practices; changes
in legal theories of liability under our insurance policies; changes
in accounting policies or practices; and changes in general economic
conditions, including inflation and other factors. Forward-looking
statements speak only as of the date on which they are made, and the
Company undertakes no obligation to update publicly or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise.

    For more information visit Tower's website at
http://www.twrgrp.com/.

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