Towers Watson Capital Markets, Inc., the wholly owned subsidiary of global professional services company Towers Watson, announced it recently arranged a private placement catastrophe bond, Oak Leaf Re 2013-1, which closed at $30.49 million. Oak Leaf Re has issued for the third consecutive year and represents a significant increase over the Oak Leaf Re 2012-1 issue. The Oak Leaf Re 2013-1 series of bonds has a one-year expected maturity and will provide indemnity-based, collateralized catastrophe reinsurance coverage for a Florida homeowners specialty insurance company, a brokerage client of Towers Watson.
"We are pleased to see the continuing and growing commitment of insurance-linked securities (ILS) investors to the Oak Leaf program," said Michael Popkin, TWCM's co-head of ILS. "As a repeat issuer, the cedant was able to enhance its already established relationships with investors, which is critical in the private placement market."
TWCM arranged for Oak Leaf Re 2013-1 to contain three layers of the cedant's risk management program, including a reinstatement premium protection layer. Similar to previous years, another layer of Oak Leaf Re 2013-1 covered both a top layer for severity and an aggregate layer for frequency protection of the cedant's program.
"By working closely in an integrated fashion with traditional reinsurance brokerage placement, we ensure the capital market piece fits squarely within the overall risk transfer while providing cedants with the most efficient execution," said Rick Miller, TWCM's co-head of ILS.
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 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.