Towers Watson Capital Markets launches $22.78 million cat bond

Towers Watson Capital Markets last week arranged a private placement catastrophe bond, Oak Leaf Re 2012-1, which closed at $22.78 million.

Oak Leaf Re 2012-1's value is twice as large as the first Oak Leaf Re insurance-linked securities offering last year. Similar to last year's issuance, the Oak Leaf Re 2012-1 series of bonds has a one-year expected maturity.

"Towers Watsons's presence in this marketplace has been well received, evidenced by the increased number of investors participating in the risk transfer mechanism," said Mike Popkin, senior vice president at Towers Watson Capital Markets.

"TWCM expects that the increased number of investors should continue to expand the secondary market liquidity, which was established during the inaugural year of the Oak Leaf Re program."