Tower Group Updates Figures on Merger Status with Canopius

January 17, 2013

Tower Group announced that it has received all required insurance regulatory approvals for its merger agreement with Canopius Holdings Bermuda Limited (CHBL).

In addition the bulletin said that Tower Group “is restating its reports issued on Form 10-Q for the periods ended March 31, 2012, June 30, 2012 and September 30, 2012. During the review by the Securities and Exchange Commission (SEC) of the CHBL Form S-4, in connection with the previously announced merger between Tower and the Bermuda reinsurance operations of Canopius Group Ltd., Tower determined that a $3.1 million deferred tax item that had been recorded as a reduction to tax expense and disclosed in Tower’s report on Form 10-Q for the period ended March 31, 2012 should more appropriately be recorded as a reduction to goodwill.”

Tower said it “has made this change and has also recorded into the periods in which they originated other immaterial adjustments that were initially recorded in the periods in which they were identified.

“In addition, Tower also recorded adjustments affecting the net income of the reciprocal businesses which did not affect earnings per share or book value per share for Tower’s common shareholders, because the reciprocal businesses are consolidated with Tower but are not included in net income attributable to Tower Group, Inc. or in Tower Group, Inc. stockholders’ equity.

“As a result of these immaterial adjustments, Tower is also revising its Form 10-K for the year ended December 31, 2011.”

The full summary of the changes may be obtained on the Group’s website.

Source: Tower Group

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