Tower Group, Inc.has completed the acquisition of North American Lumber Insurance Company, an insurance company with active licenses in the nine states which it plans to use to expand.
The states are New Jersey, Connecticut, Massachusetts, Rhode Island, Vermont, Maryland, Delaware, South Carolina and Wisconsin.
Concurrent with the closing, NALIC was renamed Tower National Insurance Company. Tower Group, Inc. paid $1.05 million in cash at closing. An additional $75,000 will be paid contingent upon license reactivation in each of Pennsylvania and Maine within one year of the closing date. In addition, officials said that all liabilities and assets of Tower National were transferred to a liquidating trust prior to closing with the exception of the company’s charter and insurance licenses.
Michael Lee, president and chief executive officer of Tower Group, Inc., commented, “We are pleased with the close of the transaction which will enable us to expand our licensing and proceed with our territorial expansion.”
Tower Group, Inc., headquartered in New York City, offers property and casualty insurance products and services through its insurance company and insurance service subsidiaries. Its insurance company subsidiary, Tower Insurance Company of New York, is rated “A-” (Excellent) by A.M. Best and offers commercial insurance products to small to medium size businesses and personal insurance products to individuals. Its insurance services subsidiary, Tower Risk Management, acts as a managing general agency, adjusts claims and negotiates reinsurance terms on behalf of other insurance companies. In March 2005, Tower Group, Inc. acquired Tower National Insurance Company.
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