Farmers Sponsored Topanga Re Ltd. (Series 2021 1) Notes

On December 22, 2021, Farmers closed their first 144A Cat Bond through Topanga Re Ltd.

• Farmers inaugural 144A Cat Bond issuance
• Bermuda domiciled special purpose insurer providing reinsurance protection to Farmers

Innovative and first of its kind extension subrogation mechanic included in Cat Bond

$100mm 2021 1 Class A Notes provide Per Occurrence, indemnity triggered event coverage

• Four year risk period
• Perils include US named storm, earthquake, severe weather and fire
• AIR expected loss: 1.49% (sensitivity case)
• Final investor spread: 4.75%

$60mm 2021 1 Class B Notes provide Annual Aggregate, indemnity triggered coverage

• Two year risk period
• Perils include US named storm, earthquake, severe weather and fire
• AIR expected loss: 1.03% (sensitivity case)
• Final investor spread: 15.00%

TCMA acted as Joint Structuring Agent and Co-Manager

• Presented innovative structuring ideas and helped to finalize the structures
• Advised on creation of detailed historical loss data set and refined reporting allowing investors to especially analyze the Annual Aggregate Class B Notes
• Assisted in all aspects of the structuring and placement including, but not limited to:
  • Structuring and coordination with legal counsel and other service providers
  • Finalizing investor presentation, risk analysis results, and offering documents
  • Investor roadshow and marketing process