Towers Watson Capital Markets (TWCM) Inc., a wholly owned subsidiary of global professional services company Towers Watson (NYSE, NASDAQ: TW), announced it has arranged a private placement catastrophe bond, Skyline Re 2013-1, which closed at $61.2 million and at the tight end of price guidance. The transaction transfers risks associated with the New Madrid earthquake on a per-occurrence basis, as well as severe convective storm losses on an aggregate basis. Skyline Re will provide one-year, indemnity-based collateralized catastrophe reinsurance coverage for The Cincinnati Insurance Company.
“The Towers Watson Capital Markets team was very pleased to collaborate with Cincinnati Insurance, a true market leader, on such an innovative structure. The breadth and depth of investor involvement in the transaction clearly demonstrates the acceptance of the private placement catastrophe bond technology that Towers Watson is employing to bring new cedants and new perils to market,” said Michael Popkin, senior vice president, TWCM.
“This deal highlights strong support for the cedant and the appeal of diversifying perils for insurance-linked securities investors,” said Rick Miller, senior vice president, TWCM. “Towers Watson will continue to build its insurance-linked securities platform, and we look forward to bringing other new cedants to market in the future.”
About Towers Watson Capital Markets Inc.Towers Watson Capital Markets Inc. is a wholly owned subsidiary of Towers Watson that advises clients in the areas of risk-linked securities, retirement risk transfer transactions and asset risk management services, including evaluating and facilitating risk management solutions involving securities and other capital market instruments. About Towers Watson Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers solutions in the areas of benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at towerswatson.com.