Posted on 19 Nov 2009
Tower Group, Inc. announced this week that it has completed the acquisition of Specialty Underwriters' Alliance, Inc. The transaction is valued at $107 million based on Tower's closing price. Tower announced a definitive agreement to acquire SUA on June 22, 2009. All closing conditions have been met.
Michael Lee, President and Chief Executive Officer of Tower, stated, "We are pleased to complete the acquisition of SUA. We are accomplishing some important objectives with this transaction including the strengthening of Tower's specialty business segment with an established underwriting platform in the Midwest. On a pro forma basis as of September 30, 2009, our stockholders' equity has increased to approximately $1.1 billion, and our book value per share has increased to approximately $23.50. We look forward to working with SUA's employees in order to deliver substantial value to producers and customers through our higher rating and broader range of products."
SUA is a specialty property and casualty insurance company providing commercial insurance products through wholesale agents that serve niche groups of insureds. These targeted segments require highly specialized knowledge due to their unique risk characteristics. Examples include transportation, professional employer organizations, alternative staffing, and public entities. SUA produced $143 million of gross premiums for the nine months ended September 30, 2009.
With the close of the transaction, SUA shares will be delisted from the NASDAQ.
About Tower Group, Inc.
Tower Group, Inc. offers diversified property and casualty insurance products and services through its operating subsidiaries. Its insurance company subsidiaries offer insurance products to individuals and small to medium-sized businesses through its network of retail and wholesale agents and specialty business through program underwriting agents. Tower's insurance services subsidiaries provide underwriting, claims and reinsurance brokerage services to other insurance companies.