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Towers Watson Capital Markets Closes on Sunshine Re 2013-1, A Multiyear, $20 Million Catastrophe Bond

Posted on 13 May 2013 by Neilson

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Towers WatsonTowers Watson Capital Markets (TWCM), Inc., the wholly owned subsidiary of global professional services company Towers Watson, announced it has recently arranged a private placement catastrophe bond, Sunshine Re 2013-1, for the Florida Municipal Insurance Trust (FMIT). The bond closed at $20 million with a coupon of 9.25% for three-year Florida risk. Specifically, the transaction transfers risks associated with Florida named windstorms on a per-occurrence basis.

"We continue to see increased support from insurance-linked securities investors for our private placement approach that brings new cedants and diversifying perils to the market," said Michael Popkin, TWCM senior vice president.

Sunshine Re will provide FMIT with three-year indemnity-based collateralized catastrophe reinsurance coverage. This transaction represents the fourth private placement bond TWCM has successfully placed in the market, with the previous placements all one-year transactions. By extending Sunshine Re to three years, FMIT gained additional stability and flexibility in its reinsurance program, sourced many new markets and built relationships with the growing convergence reinsurance markets.

"The indemnity-based coverage from the collateralized capacity works very well with the rest of the reinsurance placement. FMIT took a lot of comfort in the fact that the cover follows the fortunes of its underlying book of business," said Steve Levene, corporate practice leader for insurance brokerage and risk consulting, Towers Watson.

"I believe this type of diversification is a sign of the confidence the market has in the FMIT," noted Rick Miller, TWCM senior vice president. He added that FMIT's engagement with the changing marketplace, which includes the capital markets, reflected the joint efforts of TWCM and Towers Watson's brokerage line of business.

About Towers Watson Capital Markets, Inc.

Towers Watson Capital Markets (TWCM), 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


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