Tower Group, Inc. (Tower) (NASDAQ: TWGP) announced today that it has consummated its $75 million investment in Canopius Group, Ltd. (Canopius), a privately owned Lloyd’s of London insurance holding company domiciled in Guernsey, Channel Islands. Canopius’s principal business is insurance and reinsurance underwriting through Lloyd’s syndicates managed by Canopius Managing Agents Limited and reinsurance through Canopius Bermuda Limited. In accordance with the previously announced terms of the investment, Tower has acquired 10.7% of the ordinary share capital of Canopius and has appointed one member of the Canopius board of directors. Canopius has also committed to assist Tower, at Tower’s option, with the establishment of a presence at Lloyd’s, subject to the required approval of Lloyd’s and the U.K. Financial Services Authority. On July 30, 2012, Tower announced that it had exercised its option to combine with the Bermuda reinsurance business currently operated by Canopius.
Commenting on the transaction, Tower President and CEO Michael Lee noted, “We are pleased with the opportunity to further expand our business relationship with Canopius, which we commenced in July, 2011 as a quota share reinsurer. We have a very high regard for the Canopius management team led by its Executive Chairman, Michael Watson, and its strong track record and expertise in the specialty and international business underwritten through the Lloyd’s market. Through the exercise of the merger option, which we announced on July 30, 2012, we have the opportunity to combine with the Bermuda reinsurance business currently operated by Canopius, which we believe will enhance our overall profitability.”
About Tower Group, Inc.
Tower Group, Inc. offers diversified property and casualty insurance products and services through its operating subsidiaries.Our Commercial Insurance Segment offers a broad range of commercial lines property and casualty insurance products to small to mid-sized businesses distributed through a network of retail, wholesale and program underwriting agents on both an admitted and non-admitted basis. This segment also includes reinsurance solutions provided primarily to small insurance companies;