Tower Group has accomplished its $75m investment in Canopius Group and subsequently acquired 10.7% of the ordinary share capital in the firm.
Canopius, a privately owned Lloyd’s of London insurance holding company offers insurance and reinsurance underwriting services through Lloyd’s syndicates spearheaded by Canopius managing agents and reinsurance through Canopius Bermuda.
Pursuant to the takeover of minority stake, Tower has appointed one member to the Canopius board of directors.
Tower president and CEO Michael Lee said the firm is pleased with the opportunity to further expand its business relationship with Canopius, which it commenced in July, 2011 as a quota share reinsurer.
"We have a very high regard for the Canopius management team led by its Executive Chairman, Michael Watson, and its strong track record and expertise in the specialty and international business underwritten through the Lloyd’s market," Lee said.
"Through the exercise of the merger option, which we announced on July 30, 2012, we have the opportunity to combine with the Bermuda reinsurance business currently operated by Canopius, which we believe will enhance our overall profitability."
Tower Group provides diversified property and casualty insurance products and services through its operating subsidiaries to small to mid-sized businesses.