Tower Completes Acquisition of Specialty Underwriters' Alliance, Inc.
November 13 2009 - 5:25PM
Business Wire
Tower Group, Inc. (“Tower”; NASDAQ: TWGP) announced today that
it has completed the acquisition of Specialty Underwriters'
Alliance, Inc. (“SUA”; NASDAQ: SUAI). 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.
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,
2008 and 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.
For more information visit Tower's website at
http://www.twrgrp.com/
Specialty Underwriters Alliance (NASDAQ:SUAI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Specialty Underwriters Alliance (NASDAQ:SUAI)
Historical Stock Chart
From Jul 2023 to Jul 2024