The business is expected to add approximately $40m in premiums annually
Tower Group has acquired the renewal rights to the workers compensation business of AequiCap Program Administrators, an underwriting agency based in Fort Lauderdale, Florida.
The company stated that the business subject to the agreement primarily consists of small, low to moderate hazard workers compensation policies in Florida that are consistent with its current underwriting guidelines.
In addition, AequiCap’s employees involved in the servicing of the workers compensation business will become employees of Tower.
Michael Lee, president and CEO of Tower Group, said: “Through our CastlePoint operations, Tower has worked with AequiCap since 2007 to provide insurance services and therefore, we have a deep degree of familiarity with the business. We are pleased to further strengthen our regional presence in the Southeast and now have offices in Mobile, Atlanta, and Fort Lauderdale. Importantly, the producers and insureds alike will benefit from Tower’s higher financial strength rating, our strong level of capitalization and the continuity of business relationships with the professionals they have worked with in the past who are now joining Tower.”
The business is expected to contribute approximately $40m in premiums on an annual basis.