Towers Watson Capital Markets Closes on Sunshine Re 2013-1, a Multiyear, $20 Million Catastrophe Bon

Towers Watson Capital Markets Closes on Sunshine Re 2013-1, a Multiyear, $20 Million Catastrophe Bond

NEW YORK--(BUSINESS WIRE)-- Towers Watson Capital Markets (TWCM), Inc., the wholly owned subsidiary of global professional services company Towers Watson (NYSE, NASDAQ: TW), announced it has recently arranged a private placement catastrophe bond, Sunshine Re 2013-1, for the Florida Municipal Insurance Trust (FMIT). The bond closed at $20 million with a coupon of 9.25% for three-year Florida risk. Specifically, the transaction transfers risks associated with Florida named windstorms on a per-occurrence basis.

"We continue to see increased support from insurance-linked securities investors for our private placement approach that brings new cedants and diversifying perils to the market," said Michael Popkin, TWCM senior vice president.

Sunshine Re will provide FMIT with three-year indemnity-based collateralized catastrophe reinsurance coverage. This transaction represents the fourth private placement bond TWCM has successfully placed in the market, with the previous placements all one-year transactions. By extending Sunshine Re to three years, FMIT gained additional stability and flexibility in its reinsurance program, sourced many new markets and built relationships with the growing convergence reinsurance markets.

"The indemnity-based coverage from the collateralized capacity works very well with the rest of the reinsurance placement. FMIT took a lot of comfort in the fact that the cover follows the fortunes of its underlying book of business," said Steve Levene, corporate practice leader for insurance brokerage and risk consulting, Towers Watson.

"I believe this type of diversification is a sign of the confidence the market has in the FMIT," noted Rick Miller, TWCM senior vice president. He added that FMIT's engagement with the changing marketplace, which includes the capital markets, reflected the joint efforts of TWCM and Towers Watson's brokerage line of business.

About Towers Watson Capital Markets, Inc.

Towers Watson Capital Markets (TWCM), Inc., is a wholly owned subsidiary of Towers Watson that advises clients in the areas of risk-linked securities, retirement risk transfer transactions and asset risk management services, including evaluating and facilitating risk management solutions involving securities and other capital market instruments.

About Towers Watson

Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers solutions in the areas of benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at towerswatson.com.

Forward-Looking Statements

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as "may," "will," "would," "expect," "anticipate," "believe," "estimate," "plan," "intend," "continue," or similar words, expressions or the negative of such terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of Towers Watson's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to successfully make suitable acquisitions and divestitures; the risk that the acquisition of Extend Health is not profitable or is not otherwise successfully integrated; the ability to successfully address issues surrounding the number of company shares that will become freely tradable on January 1, 2014; the risk that potential changes in federal and state health care regulations, or future interpretation of existing regulations, may have a material adverse impact on our business; the risk that our newly acquired Extend Health business fails to maintain good relationships with insurance carriers, becomes dependent upon a limited number of insurance carriers or fails to develop new insurance carrier relationships; the risk that changes and developments in the health insurance system in the United States could harm our business; our ability to respond to rapid technological changes; the ability to recruit and retain qualified employees; our ability to retain client relationships, particularly in the executive compensation business, given recent Securities and Exchange Commission (SEC) and other regulatory actions; and the risk that a significant or prolonged economic downturn could have a material adverse effect on Towers Watson's business, financial condition and results of operations. Additional risks and factors are identified under "Risk Factors" in Towers Watson's most recent Annual Report on Form 10-K filed with the SEC.

You should not rely upon forward-looking statements as predictions of future events because these statements are based on assumptions that may not come true and are speculative by their nature. Towers Watson does not undertake an obligation to update any of the forward-looking information included in this document, whether as a result of new information, future events, changed expectations or otherwise.

Towers Watson
Josh Wozman, +1 703-258-7670
josh.wozman@towerswatson.com

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