Tower Group, Inc. (“Tower”) (Nasdaq: TWGP) announced today its support of more than £200m ($325m) projected gross written premiums at Lloyd’s for the 2013 year of account. This is a significant step in Tower’s strategy to develop its presence in the Lloyd’s market.
As previously announced on April 25, 2012, Canopius Group Limited (“Canopius”) committed to assist Tower in the establishment of its presence at Lloyd’s. Canopius has established Syndicate 6115, a non-marine short-tail orientated Special Purpose Syndicate (the “SPS”) underwriting a whole account and additional class quota shares of Canopius Syndicate 4444, which will commence trading in January 2013 with initial capacity of £70m ($113m) and 100% supported by Tower.
Furthermore, Tower will support a number of other Lloyd’s syndicates for the 2013 year of account with combined capacity of £78m ($126m). These will be predominantly supported through a spread corporate member, Tower Corporate Capital 1 Limited, which has been established with the assistance of Argenta Private Capital Limited (“Argenta”), specialist insurance investment advisers, who will provide administration services in respect of the majority of Tower’s ongoing non-Canopius participations.
Commenting on the announcement, Tower President and CEO Michael Lee said, “We are pleased to further expand our business relationship with Canopius through the launch of the SPS, a relationship which we commenced in July 2011 as a quota share reinsurer of Syndicate 4444 and further built on in August 2012 with a 10.7% equity investment in Canopius. 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. The launch of the SPS is complemented by the launch of our spread corporate member which will participate on a number of third party syndicates. Together these initiatives help us achieve one of our key strategic objectives by significantly accelerating our involvement with the Lloyd's market and its access to profitable specialty and international business. Furthermore, we are pleased to form a business relationship with Argenta, and look forward to drawing on their deep expertise of the Lloyd’s market.”