Towers Watson Places $60M Cat Bond for New Jersey Manufacturers Insurance

July 25, 2013

Towers Watson Capital Markets Inc., a subsidiary of global professional services company Towers Watson, 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 of Towers Watson Capital Markets.

“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.”

Towers Watson Capital Markets 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.

“The ILS market continues to transform traditional reinsurance while becoming more accessible to smaller players,” said Michael Popkin, Towers Watson Capital Markets’ 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.”

Source: Towers Watson Capital Markets

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