Palomar Specialty Insurance Closed Torrey Pines Re Ltd.

On 5/10/17, Palomar completed its first CAT Bond through Torrey Pines Re Ltd.

• ~$166 million 144A Cat Bond issuance
• Torrey Pines Re Ltd. Series 2017-1 consists of Class A, B and C Notes

All Notes provide per occurrence, indemnity triggered event coverage

• Notes will drop-down as losses erode stated reinsurance layers beneath

Collateral invested in a puttable note

• Issued from the IBRD note yielding 6M LIBOR -0.40%

$45mm Class A Tranche: U.S. EQ only

• Expected loss (MTR RMS v.15/v.17): 1.08%
• Final pricing: 3.00%

$66mm Class B Tranche: U.S. EQ only

• Expected loss (MTR RMS v.15/v.17): 1.79%
• Final pricing: 3.75%

$55mm Class C Tranche: U.S. EQ, named storm and severe thunderstorm

• Expected loss (MTR RMS v.15/v.17): 3.65%
• Final pricing: 6.25%

Note: Pricing and reset based off a blend between RMS v.15 and v.17 results

TCMA acted as the Co-Structuring Agent and Co-Manager

• Presented innovative structuring ideas and helped to finalize the structures
• Assisted in all aspects of the placement including, but not limited to:
  • Finalizing Investor Presentation, Risk Analysis Results, and Offering Circular
  • Global roadshow and investor marketing
  • Distribution activities