Tower Group, Inc. Completes Acquisition of CastlePoint Holdings, Ltd.
05 Februar 2009 - 3:05PM
Business Wire
Tower Group, Inc. (NASDAQ: TWGP) today announced that it has
completed its acquisition of CastlePoint Holdings, Ltd. (NASDAQ:
CPHL) in a transaction valued at $531 million based on Tower�s
current market price. Tower announced a definitive agreement to
acquire CastlePoint on August 5, 2008. All closing conditions have
been met.
Key Highlights
- Increased Financial Strength.
Tower�s stockholders� equity more than doubles and is estimated to
be $733 million on a pro forma basis as of September 30, 2008. The
average credit rating of the combined investment portfolios
increases from AA- to AA.
- Access to Additional Capital to
Support Growth. The additional capital from CastlePoint will
support the growth of Tower�s primary insurance business,
organically and through acquisitions.
- Revenue Diversification. The
combined gross premiums written are projected to be in a range
between $1.1 and $1.2 billion for 2009. Tower will continue to
focus on brokerage business through its retail and wholesale
agents. CastlePoint will continue to aggregate profitable business
from managing general agents and small insurance companies.
- Cost Savings and Operational
Efficiencies. Tower and CastlePoint will have opportunities to
further streamline operations.
Michael H. Lee, President and Chief Executive Officer of Tower,
stated, �We are extremely appreciative to the shareholders of Tower
and CastlePoint for their overwhelmingly positive support for this
transaction and to everyone, including the Special Committees of
both companies and outside advisers, who worked diligently on this
transaction. The acquisition of CastlePoint uniquely positions
Tower to be able to take advantage of current market opportunities
by utilizing CastlePoint�s capital to expand our primary business
and make acquisitions that will enhance value to our
shareholders.�
With the close of the transaction, CastlePoint shares (NASDAQ:
CPHL) will be delisted from the NASDAQ.
About Tower Group, Inc.
Tower Group, Inc. offers property and casualty insurance
products and services through its operating subsidiaries. Its
insurance company subsidiaries offer insurance products to
individuals and small to medium-sized businesses. Tower Group's
insurance services subsidiaries provide underwriting, claims and
reinsurance brokerage services to other insurance companies.
For more information visit Tower's website at
http://www.twrgrp.com/.
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward-looking statements. This press release or
any other written or oral statements made by or on behalf of Tower
may include forward-looking statements that reflect Tower's current
views with respect to future events and financial performance. All
statements other than statements of historical fact included in
this press release are forward-looking statements. Forward-looking
statements can generally be identified by the use of
forward-looking terminology such as "may," "will," "plan,"
"expect," "project," "intend," "estimate," "anticipate," "believe"
or "continue" or their negative or variations or similar
terminology. All forward-looking statements address matters that
involve risks and uncertainties. Forward-looking statements speak
only as of the date on which they are made, and the assumptions
underlying our pro forma projections and/or earnings guidance could
prove incorrect, and Tower undertakes no obligation to update
publicly or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise.
Castlepoint Holdings Ltd (MM) (NASDAQ:CPHL)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Castlepoint Holdings Ltd (MM) (NASDAQ:CPHL)
Historical Stock Chart
Von Jun 2023 bis Jun 2024
Echtzeit-Nachrichten über Castlepoint Holdings Ltd (MM) (NASDAQ): 0 Nachrichtenartikel
Weitere Tower Group, Inc. News-Artikel