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Tower Group Inc. and CastlePoint Holdings Ltd. said Aug. 27 that CastlePoint Reinsurance Co. Ltd. agreed to acquire Hermitage Insurance Group Inc. from a unit of Brookfield Asset Management Inc.
The Hermitage group includes Hermitage Insurance Co. and Kodiak Insurance Co., which have admitted licenses in 10 states.
Tower Group said Aug. 5 that it agreed to acquire CastlePoint Holdings in a deal expected to close in early December. The companies anticipate the Hermitage acquisition to close in late December.
CastlePoint Holdings will pay $27 million in cash in addition to the adjusted closing book value of Hermitage, for a total cash consideration of approximately $135 million. No outside financing will be required.
The companies said the acquisition will provide access to 150 new retail agents in the Southeast, without overlap with Tower Group's or CastlePoint Holdings' existing producers. The companies also expect Hermitage to produce approximately $100 million...