Tower Group, Inc. announced on April 10, 2007 that it has completed the acquisition of Preserver Group, Inc., a New Jersey based property and casualty insurer. This transaction was previously announced on November 14, 2006.

Michael Lee, President and Chief Executive Officer of Tower Group, Inc. stated, "This transaction is consistent with our overall acquisition strategy to acquire small regional insurance companies. Preserver provides us with access to producers throughout the Northeast and accelerates our regional expansion plans. We will be working together with Preserver to make this transaction accretive for our shareholders."

Preserver Group, Inc. produced $86 million in direct premiums written during 2006 through its distribution network of approximately 300 independent agents. Preserver writes business in New Jersey, Maine, New York, New Hampshire, Massachusetts, Vermont, Rhode Island and Pennsylvania.

Tower Group, Inc. headquartered in New York City, offers property and casualty insurance products and services through its insurance company and insurance service subsidiaries. Its two insurance company subsidiaries are Tower Insurance Company of New York and Tower National Insurance Company, which are rated A- (Excellent) by A.M. Best Company and offer commercial insurance products to small to medium-size businesses and personal insurance products to individuals. Tower Group's insurance services subsidiary, Tower Risk Management Corp., acts as a managing general agency, adjusts claims and negotiates reinsurance terms on behalf of other insurance companies.

4/11/07