Tower Hill Sponsors the Formation of THIE Reciprocal Exchange

Transaction Overview

Tower Hill Insurance (“Tower Hill”) is sponsoring formation of Tower Hill Insurance Exchange (“THIE”)

  • THIE is a new Florida focused personal lines insurer in the form of a reciprocal exchange
  • Pending approval from the FLOIR, THIE anticipates writing business in Florida no later than 1/1/2022

THIE has an initial capital commitment in excess of $200mm from world-class partners

  • Capital commitment is led by Gallatin Point with Vantage Group and RenaissanceRe also supporting THIE
  • Proceeds will be used to capitalize THIE’s balance sheet and support THIE’s growth prospects

THIE entered into an Attorney-in-Fact agreement with Tower Hill Risk Management, LLC (“THRM”)

  • THRM will provide all operational functions including pricing, U/W, claims, distribution and marketing

Tower Hill is entering its 50th year as a provider of residential property coverage to the Florida market

  • $810mm of total written premium in 2020; ~85% of which is Florida personal residential business
  • Key products include Homeowners, Fire & Allied, Comm. Multi-Peril, Condo, Renters, and Mobile Homes

Transaction will further strengthen Tower Hill’s position and provides attractive solution to FL residents

  • Further cements Tower Hill’s long-term commitment to innovative property insurance solutions for Floridians
  • THIE will be a Florida-domiciled reciprocal and will be owned by Florida policyholders (subscribers)

TigerRisk Capital Markets & Advisory Role

TCMA is acting as exclusive Transaction Advisor and Placement Agent for Tower Hill

  • Provided objective advice and acted as a confidant to Tower Hill throughout the process
  • Contacted targeted investor universe to optimize deal terms
  • Placement Agent in connection with THIE surplus note security issuance
  • Holistic advice and analysis provided by TigerRisk’s top notch property cat reinsurance team
  • Key roles and responsibilities included:
    • Assistance in preparing THIE business plan and financial projections and regulatory / rating agency materials
    • Preparing financial packages and materials for potential investors
    • Marketing the transaction to potential investors and facilitating investor discussions
    • Structured the transaction and assisted with negotiation of deal terms & conditions

This transaction further solidifies TCMA as the market leader in reciprocal exchange formations

  • Including the recent formations of Vault, Noblr, Kin, TRUE and American Mobile reciprocal exchanges