CORRECTING and REPLACING Tower Group Announces Closing of Merger with Canopius Holdings Bermuda Limited and Trading of Tower

  CORRECTING and REPLACINGTower Group Announces Closing of Merger with
  Canopius Holdings Bermuda Limited and Trading of Tower Group International,
  Ltd. Common Shares on March 14, 2013

CORRECTION…by Tower Group, Inc.

Business Wire

NEW YORK -- March 13, 2013

First graph, fifth sentence of release has been replaced and now reads: It is
expected that the opening price of Tower Ltd. common shares, which will have a
new CUSIP number of G8988C105, will be based on the closing price of Tower
Group, Inc. on March 13, 2013, adjusted to account for the 1.1330 exchange
ratio.

The corrected release reads:

TOWER GROUP ANNOUNCES CLOSING OF MERGER WITH CANOPIUS HOLDINGS BERMUDA LIMITED
AND TRADING OF TOWER GROUP INTERNATIONAL, LTD. COMMON SHARES ON MARCH 14, 2013

Tower Group, Inc. (NASDAQ: TWGP) announced the closing of its merger with
Canopius Holdings Bermuda Limited (Canopius Bermuda), which will become
effective later today following the close of trading on The NASDAQ Global
Select Market (NASDAQ). Upon closing of the merger, Tower will become an
indirect wholly-owned subsidiary of Canopius Bermuda, which will change its
name effective at the closing to Tower Group International, Ltd. (Tower Ltd.).
Under the terms of the merger agreement, Tower stockholders will receive
1.1330 common shares of Tower Ltd. for each outstanding share of Tower common
stock held. Tower Ltd. common shares will be listed on NASDAQ under the symbol
“TWGP,” which is the same trading symbol as is currently used by Tower, and
are expected to begin trading at the market opening on March 14, 2013. It is
expected that the opening price of Tower Ltd. common shares, which will have a
new CUSIP number of G8988C105, will be based on the closing price of Tower
Group, Inc. on March 13, 2013, adjusted to account for the 1.1330 exchange
ratio.

Michael H. Lee, President and Chief Executive Officer, said, “After working
diligently on the merger with Canopius Bermuda for more than one year, we are
very pleased with the successful completion of this transformative and
strategically important transaction. We expect this merger to be immediately
accretive and to eventually allow us to achieve our long-term ROE target of 13
to 15%. From a strategic standpoint, we believe this merger will position
Tower to build a profitable, diversified international specialty business that
has the potential to create substantial long-term value for our stockholders.
As a result of the merger, we will create an efficient Bermuda-domiciled
holding company structure that will combine Tower’s businesses with certain of
Canopius’s reinsurance business and give us access to U.S., Bermuda and
Lloyd’s markets. Finally, we also want to thank everyone who worked on this
transaction, including the bankers and attorneys as well the staff and Board
members from Canopius Group Limited and Tower Group.”

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 provides
reinsurance, primarily on a quota share basis, to other insurance providers.

Our Personal Insurance Segment offers a broad range of personal lines property
and casualty insurance products to individuals distributed through a network
of retail and wholesale agents.

Our Insurance Services Segment provides underwriting, claims and reinsurance
brokerage services to insurance companies.

For more information visit Tower’s website at http://www.twrgrp.com/

Contact:

Tower Group, Inc.
Bernie Kilkelly
Managing Vice President, Investor Relations
212-655-8943
bkilkelly@twrgrp.com
 
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