Tower Group has completed its previous integration with Canopius Holdings Bermuda Limited and Canopius Bermuda, being managed by Canopius Group.

The consolidation of both firms will create a global specialty insurance firm with greater diversification supported by an efficient international holding company structure and should enable Tower to increase its profitability, claims Tower.

Tower has agreed to invest nearly $75m to buy a 10.7% stake in Canopius Group subject to the closing of Canopius Group’s acquisition of Omega Insurance Holdings.

As per the merger agreement earmarked, Tower stockholders will receive, in exchange for each share of Tower’s common stock, a certain number of Canopius Bermuda shares equal to a Stock Conversion Number and $1.25 in cash.

Canopius Holdings Bermuda is an indirect wholly owned subsidiary of Canopius Group, which currently writes reinsurance and provides capital support to Canopius Group’s underwriting operations at Lloyd’s of London.