Florida’s Tower Hill secures Winston Re cat bonds at $400m

Floridian insurer Tower Hill has ventured into the cat bond market with the closing of $400 million of reinsurance protection against named windstorm losses in Florida.

Winston Re cat bonds have been listed on the Bermuda Stock Exchange by Conyers Securities.

The Winston Re cat bonds are the debut bonds for Tower Hill insurance Exchange, which is an affiliate of Florida-based Tower Hill insurance Group. It is a reciprocal insurer whereby the

policyholders, also known as members, insure each other and share in the underwriting profits generated via subscriber savings accounts.

The Winston Re three-year bonds have been issued in two tranches – a $250 million Class A tranche which is reported to carry a coupon of 10.25% and a $150 million Class B tranche which has a coupon of 11.75%.

In 2023, Tower Hill Exchange secured a total of almost $2 billion in catastrophe reinsurance cover to protect it in excess of rating agency requirements, including all perils.

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