Tower Group International, Ltd. Enters into Agreement to Acquire American
Safety Reinsurance, Ltd. from Fairfax Financial Holdings Limited
Operations of American Safety Reinsurance, Ltd. to be Combined with Tower’s
Bermuda Reinsurer, Tower Reinsurance, Ltd.
HAMILTON, Bermuda -- June 3, 2013
Tower Group International, Ltd. (NASDAQ: TWGP) announced today that it has
entered into an agreement to acquire American Safety Reinsurance, Ltd. (ASRe),
the Bermuda-based reinsurance subsidiary of American Safety Insurance
Holdings, Ltd. (ASI), from Fairfax Financial Holdings Limited (Fairfax
Financial) for approximately $59 million. The purchase of ASRe is expected to
close in the second half of 2013, following the completion of Fairfax
Financial’s acquisition of ASI. Following the close of the transaction, the
operations and employees of ASRe will be combined with Tower’s Bermuda
reinsurer, Tower Reinsurance, Ltd. (Tower Re).
“The acquisition of ASRe enables us to diversify and expand our specialty
reinsurance business and clients as well as to accelerate our development of
our newly formed Bermuda reinsurance business platform needed to support this
growing business,” said Michael H. Lee, Tower’s President and Chief Executive
Officer. “ASRe’s specialty casualty-focused reinsurance business will
complement and further diversify Tower Re’s existing business, which is
primarily comprised of qualifying quota share reinsurance treaty business for
Lloyd’s syndicates and property retrocessional excess quota share business
underwritten with select partners. We will also benefit from the addition of
ASRe’s experienced casualty underwriting, support staff and extensive network
of reinsurance brokers and specialty insurance company clients in the U.S. We
expect this acquisition to generate approximately $40 million of premiums and
be modestly accretive to Tower’s earnings in 2013, with a growing profit
contribution beginning in 2014.”
Tower Re was established in the first quarter of 2013 following the successful
completion of the merger between Tower Group, Inc. and Canopius Holdings
Bermuda Limited, which was renamed Tower Group International, Ltd. and became
the ultimate parent company. Tower Re is a specialty reinsurance company that
provides a range of reinsurance products to Lloyd’s syndicates and to select
insurance companies in the U.S. and Bermuda.
About Tower Group International, Ltd.
Tower Group International, Ltd.is aBermuda-based global diversified
insurance holding company and is listed on the NASDAQ Global Select Market
under the symbol TWGP. Through our insurance and reinsurance subsidiaries in
the U.S. and Bermuda, collectively referred to as Tower Group Companies and
rated A- (Excellent) by A.M. Best, we deliver a broad range of commercial,
personal and specialty insurance products and services in the U.S. and
specialty reinsurance products globally through our distribution and
For more information, visit Tower's website at http://www.twrgrpintl.com/
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. This press release and any other written or
oral statements made by or on behalf of Tower may include forward-looking
statements that reflect Tower's current views with respect to future events
and financial performance. All statements other than statements of historical
fact included in this press release are forward-looking statements.
Forward-looking statements can generally be identified by the use of
forward-looking terminology such as "may," "will," "plan," "expect,"
"project," "intend," "estimate," "anticipate," "believe" and "continue" or
their negative or variations or similar terminology. All forward-looking
statements address matters that involve risks and uncertainties. Accordingly,
there are or will be important factors that could cause the actual results of
Tower to differ materially from those indicated in these statements. Please
refer to Tower’s filings with the SEC, including among others Tower’s Annual
Report on Form 10-K for the year ended December 31, 2012, and its subsequent
filings on Form 10-Q, for a description of the important factors that could
cause the actual results of Tower to differ materially from those indicated in
these statements. Forward-looking statements speak only as of the date on
which they are made, and Tower undertakes no obligation to update publicly or
revise any forward-looking statement, whether as a result of new information,
future developments or otherwise.
Tower Group International, Ltd.
Bernie Kilkelly, 212-655-8943
Managing Vice President, Investor Relations
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