Daily Insurance Industry News
Daily Insurance Industry News
Sunday 18th of November 2018
August 29, 2008

Castlepoint Re aquires Hermitage

by David Masters

Story link: Castlepoint Re aquires Hermitage

Bermuda-based Castlepoint Re has agreed terms to acquire property and casualty insurer Hermitage Insurance Group in a deal worth around $135 million.

Castlepoint will pay $27 million in cash plus the adjusted closing book value of Hermitage to the seller, a subsidiary of Brookfield Asset Management, Inc.

Hermitage is a specialist property and casualty insurance holding company offering both admitted, and excess and surplus lines products to small commercial customers in the Eastern United States.

Earlier this month, Tower Group Inc. announced the acquisition of Castlepoint for $490 million.

Both deals are expected to be closed by December, and Tower hopes the acquisitions will significantly increase its 2009 earnings.

Tower has held its 2008 earnings prediction at $2.90 to $3.00 per share, and has also maintained its 2009 outlook at $3.20 to $3.40 per share, but expects the Hermitage acquisition to push earnings towards the upper end of this prediction.

Following the announcement shares in Castlepoint rose $0.17 to $10.85, whilst Tower Group’s shares rose $0.01 to $20.01.


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