Tower Group, Inc.
) has closed its merger with Canopius Holdings Bermuda Limited.
Tower is now an indirect wholly-owned subsidiary of Canopius
Bermuda. The later has changed its name to Tower Group
International, Ltd. (Tower Ltd.), right after the merger
The shareowners of Tower had been given 1.1330 shares of Tower
Ltd. for each share owned.
The shares of Tower Ltd. have been listed on the NASDAQ with
the ticker symbol "TWGP" which it was allowed to retain. While
the merged entity retained the ticker symbol of Tower Group, the
shares have a new CUSIP number and the share price has been
adjusted to account for stock conversion.
Via the merger Tower will gain access to the Bermuda platform
which would provide competitive advantage to support growth
opportunities in U.S. and international markets. Tower expects a
combined gross premium written of $2.3 billion in 2013, taking
into account business accretion from Canopius.
Post merger Tower's Assumed Reinsurance business will be
underwritten from the Bermuda office utilizing the staff acquired
from the merger with Canopius and supplemented by other Bermuda
personnel. Other businesses will be created using the Bermuda
platform. In the U.S. the company will continue to focus on
building commercial, specialty and personal lines business with
continuing reinsurance support from the Bermuda based reinsurance
affiliate. Tower will also continue to participate in Lloyd's
business through ownership in and expanded reinsurance
relationship with Canopius and continue to support other Lloyd's
The merger is expected to provide a long term return on equity
of 13% to 15%.
Tower currently retains a Zacks Rank #2 (Buy).
Other players from the same industry under our coverage -
Nielsen Holdings N.V.
Verisk Analytics, Inc.
) all carrying Zacks Rank #2 (Buy) are worth
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