Tower Group, Inc. said that it has invested $7 million in 8.5 percent convertible senior notes due 2026 of Cinium Financial Services Corp., a privately owned holding company focusing on providing surety insurance and related products and services.
This transaction, consistent with Tower's strategic investment strategy, affords Tower with the opportunity to expand into the surety market with an experienced niche writer, the group noted in a release.
In February of this year, Tower said that it entered into a program underwriting agreement with Cinium Underwriter Services Group, a managing general agency owned by Cinium to produce surety business on behalf of Tower. Cinium is able to underwrite business on behalf of Tower in 43 states and the District of Columbia.
Commenting on the transaction, Tower President and CEO Michael Lee said "We have worked with the Cinium team over the past two years, and have been impressed with their innovative approach to the surety and bonding market. We are pleased with this opportunity to make a strategic investment in Cinium and further expand our presence in the surety line of business."
Cinium Financial Services offers a product that supports small and mid-sized contractors throughout the construction process by providing bonding, working capital advances and other support services.
Tower Group, Inc. offers diversified property and casualty insurance products and services through its operating subsidiaries.
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