New York-based insurer Tower Group Inc. announced today that it has reached an agreement to acquire the outstanding stock of Preserver Group for $68 million.

Paramus, N.J.-based Preserver is a privately held company that specializes in small commercial and personal lines insurance in the Northeast. The company offers similar products and has a similar risk appetite as Tower's.

Tower said that a portion of the cash consideration of approximately $68 million will be allocated to repay all shareholder owned debt, and that it will assume $12 million of trust preferred securities.

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