On May 7, 2024, Tower Hill Insurance Exchange (“THIE”) issued a $95mn surplus note provided by Irradiant Partners, an alternative investment manager. Howden Capital Markets & Advisory (“HCMA”) acted as the exclusive placement agent to THIE in this transaction, further solidifying its position as a leading insurance-focused investment banking group.
HCMA led a number of key activities over the course of the transaction, including identifying potential surplus note investors and facilitating introductions to counterparties. Additional support from HCMA included developing the financial model, creating investor marketing materials, coordinating investor due diligence, and providing negotiation support with investors.
Commenting on the transaction, HCMA CEO, Jarad Madea, said, “Attracting a high-quality investor such as Irradiant Partners is a testament to the strength of the Tower Hill franchise, attractive Florida market conditions, and the innovative reciprocal exchange structure, where HCMA continues to be the clear market leader.”
Since its inception in December 2021, THIE has quickly established itself as a leading Florida homeowners-focused reciprocal exchange, driven by an initial capital commitment of over $200 million. Benefitting from highly favorable market conditions in Florida, aided by recent rate increases and legislative reforms, THIE is well-placed for further expansion. As the third-largest specialist residential property insurer in the state, THIE holds a 5% market share and has written over $1 billion in total direct premiums in 2023.
We look forward to continuing our journey of innovation and leadership in advising and structuring significant transactions within the insurance industry.
