Tower Hill Sponsored the Formation of THIE Reciprocal Exchange

Tower Hill Insurance (“Tower Hill”) sponsored formation of Tower Hill Insurance Exchange (“THIE”)

• THIE is a Florida focused personal lines insurer in the form of a reciprocal exchange
• The transaction closed in December of 2021

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

• Capital commitment was led by Gallatin Point with Vantage Group and RenaissanceRe also supporting THIE
• Proceeds were 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 provides 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 further strengthened 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 is a Florida-domiciled reciprocal and will be owned by Florida policyholders (subscribers)

TCMA acted 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 solidified TCMA as the market leader in reciprocal exchange formations

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