Winston Re Ltd. (Series 2025-1)

This is the second Winston Re catastrophe bond issuance for Florida focused property insurer the Tower Hill Insurance Exchange, as it returns to the capital markets to source more reinsurance protection.

For its second cat bond, Tower Hill is again using its Bermuda based special purpose insurance company named Winston Re Ltd.

Winston Re Ltd. will issue a single tranche of Series 2025-1 Class A notes that will be sold to investors and the proceeds used to collateralize a reinsurance agreement between the SPI and Tower Hill.

Similar to its debut cat bond, we’re told by sources that this Winston Re 2025-1 issuance will provide Tower Hill with reinsurance protection against named storm losses in Florida.

The protection will be structured on an indemnity trigger and per-occurrence basis, running across a three hurricane season term, beginning June 2025 and with maturity due in February 2028.

With an initial target for $100 million of protection from its second cat bond, it will be interesting to see if Tower Hill again looks to maximise this opportunity by upsizing this issuance.

The $100 million tranche of Series 2025-1 Class A notes Winston Re is offering will provide Tower Hill with reinsurance protection from an initial attachment point of $925 million to exhaustion at $1.125 billion of losses, we are told.

That gives the notes an initial attachment probability of 1.55%, an initial base expected loss of 1.42% and these notes are being offered to investors with spread guidance in a range from 7% to 7.5%.

Update 1:

Tower Hill has increased the target size, with now $175 million in Series 2025-1 Class A notes Winston Re notes set to be issued.

At the same time, the price guidance has been lowered to between 6.5% and 7%.

Update 2:

We are told that Tower Hill successfully secured the upsized $175 million in reinsurance capacity from this Winston Re 2025-1 cat bond, while the Class A notes priced at the low-end of reduced guidance to pay a 6.5% spread.