Tower Group, Inc. announced today that it has acquired the renewal rights to the workers compensation business of AequiCap Program Administrators, an underwriting agency based in Fort Lauderdale, Florida.
The business subject to the agreement primarily consists of small, low to moderate hazard workers compensation policies in Florida that are consistent with Tower's current underwriting guidelines. In addition, AequiCap's employees involved in the servicing of the workers compensation business will become employees of Tower. The business is expected to contribute approximately $40 million in premiums on an annual basis.
Michael H. Lee, President and Chief Executive Officer of Tower Group, Inc., stated, "Through our CastlePoint operations, Tower has worked with AequiCap since 2007 to provide insurance services and therefore, we have a deep degree of familiarity with the business. We are pleased to further strengthen our regional presence in the Southeast and now have offices in Mobile, Atlanta, and Fort Lauderdale. Importantly, the producers and insureds alike will benefit from Tower's higher financial strength rating, our strong level of capitalization and the continuity of business relationships with the professionals they have
worked with in the past who are now joining Tower."
About Tower Group, Inc.
Tower Group, Inc. offers 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.