Towers Watson Capital Markets (TWCM), Inc., the wholly owned subsidiary of global professional services company Towers Watson (NYSE, NASDAQ: TW), announced it recently arranged a private placement catastrophe bond, Sullivan Re 2013-1, which closed at $60 million. Sullivan Re represents the first foray into the insurance-linked securities (ILS) capital markets for the New Jersey Manufacturers Insurance Group (NJM). “Following NJM’s 100th anniversary earlier this year, we are pleased to bring its first ILS transaction to the market,” said Ed Hochberg, president, TWCM. “Sullivan Re will supplement NJM’s risk management to help ensure that the company continues to satisfy its obligations to its policyholders for years to come.” TWCM arranged for Sullivan Re 2013-1 to contain a single layer of the cedant’s risk management program. Sullivan Re has a three-year maturity and will provide per-occurrence indemnity-based, collateralized catastrophe reinsurance coverage for NJM’s New Jersey and Pennsylvania marketing territories. “As a three-year deal, the cat bond provides the cedant with an added dimension to its overall program. By working closely with our brokerage colleagues we are able to bring the most comprehensive solutions in the markets to our cedants,” said Rick Miller, TWCM’s co-head of ILS. “The ILS market continues to transform traditional reinsurance while becoming more accessible to smaller players,” said Michael Popkin, TWCM’s co-head of ILS. “This is creating a market trend we expect to continue, where new cedants are eager to develop instruments that investors want to participate in. We’re very pleased our team can fill this important role for new cedants by bringing their perils to the ILS market.” About Towers Watson Capital Markets, Inc. Towers Watson Capital Markets (TWCM), Inc., a wholly owned subsidiary of Towers Watson, 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 WatsonTowers 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. Forward-Looking Statements This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as “may,” “will,” “would,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “continue,” or similar words, expressions, or the negative of such terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of Towers Watson's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to successfully make suitable acquisitions and divestitures; the risk that the acquisition of Extend Health is not profitable or is not otherwise successfully integrated; the ability to successfully address issues surrounding the number of company shares that will become freely tradable on January 1, 2014; the risk that potential changes in federal and state health care regulations, or future interpretation of existing regulations, may have a material adverse impact on our business; the risk that our newly acquired Extend Health business fails to maintain good relationships with insurance carriers, becomes dependent upon a limited number of insurance carriers or fails to develop new insurance carrier relationships; the risk that changes and developments in the health insurance system in the United States could harm our business; our ability to respond to rapid technological changes; the ability to recruit and retain qualified employees; our ability to retain client relationships, particularly in the executive compensation business, given recent Securities and Exchange Commission (SEC) and other regulatory actions; and the risk that a significant or prolonged economic downturn could have a material adverse effect on Towers Watson’s business, financial condition and results of operations. Additional risks and factors are identified under “Risk Factors” in Towers Watson’s most recent Annual Report on Form 10-K filed with the SEC.
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