Africa Re is lining up a bid for Tower Group, Global Reinsurance understands.

New York-based Tower, which provides diversified property and casualty insurance products and services to small to mid-sized businesses, is seen as a good fit for Africa Re, which is keen to make a push into established western markets, according to sources. Terms of the bid have not yet been disclosed. Tower invested $75m to acquire a 10.7% stake in Canopius Group last month.