Insurance & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

News

10:45 AM
Connect Directly
Facebook
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Tower Group Sold to ACP Re

Personal lines will operate under the National General header, while commercial lines will operate under AmTrust.

Troubled insurer Tower Group has agreed to sell itself to ACP Re, the parent company of National General Holdings and AmTrust Financial, which will take over personal and commercial lines respectively.

An ACP Re subsidiary will buy Tower Group for approximately $3 per share, releases from National General and AmTrust say. Total purchase price for the personal lines business is expected to be approximately $130 million, while commercial is about $125 million.

[Most insurers expect increased M&A: Survey]

"This transaction will introduce homeowners and umbrella coverage into our product offerings which will allow us to bundle these coverages with our existing auto business and make our product offerings even more competitive," says Michael Karfunkel, Chairman and CEO of National General, in a statement.

AmTrust president and CEO Barry Zyskind added in a statement that he "expect[s] that the Tower book of business will further establish AmTrust as a market leader in the small commercial insurance business."

TowerGroup CIO Sal Abano left the company for MajescoMastek last year.

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

Register for Insurance & Technology Newsletters
Slideshows
Video