Tower Group, Inc. (Tower) announced today that it has invested $7 million in 8.5% convertible senior notes due 2026 of Cinium Financial Services Corporation (Cinium), a privately owned holding company focusing on providing surety insurance and related products and services. This transaction, consistent with Tower’s strategic investment strategy, affords Tower with the opportunity to expand into the surety market with an experienced niche writer.
In February of this year, Tower entered into a program underwriting agreement with Cinium Underwriter Services Group, LLC, a managing general agency owned by Cinium to produce surety business on behalf of Tower. Cinium is able to underwrite business on behalf of Tower in 43 states and the District of Columbia.
Commenting on the transaction, Tower President and CEO Michael Lee noted “We have worked with the Cinium team over the past two years, and have been impressed with their innovative approach to the surety and bonding market. We are pleased with this opportunity to make a strategic investment in Cinium and further expand our presence in the surety line of business.”
Cinium Financial Services offers a unique and innovative product that supports small and mid-sized contractors throughout the construction process by providing bonding, working capital advances and other support services. Cinium also offers traditional commercial surety bonds to the millions of American businesses that are required to post a bond under the terms of their licenses.Cautionary Note Regarding Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This press release and any other written or oral statements made by or on behalf of Tower may include forward-looking statements that reflect Tower's current views with respect to future events and financial performance. All statements other than statements of historical fact included in this press 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," "project," "intend," "estimate," "anticipate," "believe" and "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 the actual results of Tower to differ materially from those indicated in these statements. Please refer to Tower's filings with the SEC, including among others Tower's Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent filings on Form 10-Q, for a description of the important factors that could cause the actual results of Tower to differ materially from those indicated in these statements. Forward-looking statements speak only as of the date on which they are made, and Tower undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
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