Tower Group International (TWGP) has inked a deal to purchase American Safety Reinsurance (ASRe), the Bermuda-based reinsurance firm, from Fairfax Financial, at a total consideration of nearly $59m.
After completion of the transaction, the acquired reinsurance entity will be integrated with Tower’s Bermuda Reinsurer, Tower Reinsurance (Tower Re).
Following the of Fairfax Financial’s acquisition of ASI, the transaction pertaining to ASRe is likely to complete during the second half of 2013.
Commenting on the deal, Tower president and CEO Michael H Lee said that the takeover will allow the company to diversify and boost its specialty reinsurance business and clients and help to expedite its development of newly formed Bermuda reinsurance business platform.
"We will also benefit from the addition of ASRe’s experienced casualty underwriting, support staff and extensive network of reinsurance brokers and specialty insurance company clients in the US," Lee added.
Founded during the first quarter of 2013 with the merger of Tower Group and Canopius Holdings Bermuda, Tower Re operates as a specialty reinsurance company and delivers an array of reinsurance products to Lloyd’s syndicates and to insurer in the US and Bermuda.