Tower Group International Ltd. (Nasdaq: TWGP) is buying American Safety Reinsurance Ltd. for $59 million.
American Safety Reinsurance is the Bermuda-based subsidiary of American Safety Insurance Holdings Ltd., which went public in 1998. The insurance provider is owned by Fairfax Financial Holdings Ltd., an insurance company. The target provides mainly casualty reinsurance.
After the deal closes, the American Safety will be combined with Tower Reinsurance Ltd., Tower Group’s Bermuda-based reinsurance company.
Tower Reinsurance was formed when Tower Group Inc. and Canopius Holdings Bermuda Ltd. merged in 2013.
The insurance industry continues to consolidate. Recent acquisitions include Digital Insurance’s Fallick Insurance Services purchase,