Tower Group Inc. has completed its acquisition of CastlePoint Holdings Ltd. in a transaction valued at $531 million based on Tower’s current market price. Tower announced a definitive agreement to acquire CastlePoint on Aug. 5, 2008. All closing conditions have been met.
The additional capital from CastlePoint will support the growth of Tower’s primary insurance business, organically and through acquisitions.
The combined gross premiums written are projected to be in a range between $1.1 and $1.2 billion for 2009.
Tower said it will continue to focus on brokerage business through its retail and wholesale agents. CastlePoint will continue to aggregate profitable business from managing general agents and small insurance companies.
Tower and CastlePoint will have opportunities to further streamline operations, the company said.
With the close of the transaction, CastlePoint shares (NASDAQ: CPHL) will be delisted from the NASDAQ.
Source: Tower Group
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