Definitive agreement for the acquisition was signed on June 22, 2009
Tower Group has completed the acquisition of Specialty Underwriters’ Alliance. The transaction is valued at $107m based on Tower’s closing price. The definitive agreement to acquire SUA was originally signed on June 22, 2009.
The company said on a pro forma basis as of September 30, 2009, its stockholders’ equity has increased to approximately $1.1 billion, and the book value per share has increased to approximately $23.50.
Michael Lee, president and CEO of Tower, said: “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. 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 produced $143m 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.
SUA is a specialty property and casualty insurance company providing commercial insurance products through wholesale agents that serve niche groups of insureds.