Tower Group buys Specialty Underwriters' Alliance for $107 million

By Lisa Kerner

Charlotte, N.C., Nov. 13 - Tower Group, Inc. said it completed its acquisition of Specialty Underwriters' Alliance, Inc., plans for which were first announced in June.

Specialty Underwriters' Alliance agreed to be acquired in a cash-and-stock deal valued at approximately $107 million.

As previously reported, under the companies' definitive agreement Specialty Underwriters' Alliance shareholders will receive 0.28 shares of Tower common stock for each share of Specialty Underwriters' Alliance common stock or class B common stock held.

"We are accomplishing some important objectives with this transaction including the strengthening of Tower's specialty business segment with an established underwriting platform in the Midwest," Tower president and chief executive officer Michael Lee said in a company news release.

"On a pro forma basis as of Sept. 30, 2009, our stockholders' equity has increased to approximately $1.1 billion, and our book value per share has increased to approximately $23.50."

Specialty Underwriters' Alliance is a Chicago commercial insurance provider.

Tower Group is a New York property and casualty insurance company.

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