Florida insurer issues $400m of catastrophe bonds

Catastrophe bonds established to provide $400 million of cover for Florida windstorm have been listed on the Bermuda Stock Exchange. 

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%. 

The bonds were listed on the BSX by Conyers Securities.  

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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