Tower Hill Insurance Exchange $95mm Surplus Note Issuance

Transaction Overview

On May 7, 2024, Tower Hill Insurance Exchange (“THIE”) issued a $95mm surplus note provided by Irradiant Partners (“Irradiant”)

  • Irradiant Partners will join world class partners including Gallatin Point Capital (“Gallatin”), Vantage Group (“Vantage”) and RenaissanceRe (“RenRe”)
  • Capital will be used for additional growth given the highly favorable Florida market environment aided by rate increases and legislative reform

THIE is a leading Florida homeowners focused reciprocal exchange that launched in December 2021

THIE received an initial capital commitment in excess of $200 million, led by Gallatin with additional support from Vantage and RenRe

Tower Hill Insurance Group (“Tower Hill”) is a best-in-class, diversified insurance group based in Gainesville, Florida

  • Tower Hill has been active in property insurance since 1972
  • 3rd largest residential property insurer in FL with ~5% market share(a) and 50+ years experience
  • Specializes in the underwriting of residential / commercial property risks in Florida writing over $1.0bn in total direct premiums written in 2023
  • Key product offerings include Homeowners, Fire & Allied, Commercial Multi-Peril, Condo, Renters, and Mobile Homes

Irradiant is an alternative investment manager focused on liquid credit, opportunistic credit, and renewable private equity and credit

  • Total assets under management exceed $12bn with professionals operating from Los Angeles, Austin and the New York area

Howden Tiger Capital Markets & Advisory Role

HCMA acted as exclusive placement agent to THIE; key aspects of the transaction led by HCMA include:

  • Marketing the transaction, identifying potential surplus note investors and introducing the counterparties
  • Assistance with development of a detailed financial model and investor marketing materials
  • Assistance in the negotiation of key terms with investors
  • Coordinating investor diligence and preparation of financial supplements
  • Offering insight into surplus note offering transaction terms and conditions

This transaction further solidifies HCMA as the market leader in advising on the structuring, formation and capital raising for reciprocal exchanges

(a) SNL Financial.