Floridian insurer Tower Hill has ventured into the cat bond market with the closing of $400 million of reinsurance safety towards named windstorm losses in Florida.
Winston Re cat bonds have been listed on the Bermuda Stock Exchange by Conyers Securities.
The Winston Re cat bonds are the debut bonds for Tower Hill insurance coverage Exchange, which is an affiliate of Florida-based Tower Hill insurance coverage Group. It is a reciprocal insurer whereby the
policyholders, often known as members, insure one another and share within the underwriting earnings generated through subscriber financial savings accounts.
The Winston Re three-year bonds have been issued in two tranches – a $250 million Class A tranche which is reported to hold a coupon of 10.25% and a $150 million Class B tranche which has a coupon of 11.75%.
In 2023, Tower Hill Exchange secured a complete of almost $2 billion in disaster reinsurance cowl to guard it in extra of score company necessities, together with all perils.
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