Towers Watson Capital Markets Closes on $30.49 Million Catastrophe Bond


Towers Watson Capital Markets Closes on $30.49 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 recently arranged a private placement catastrophe bond, Oak Leaf Re 2013-1, which closed at $30.49 million. Oak Leaf Re has issued for the third consecutive year and represents a significant increase over the Oak Leaf Re 2012-1 issue. The Oak Leaf Re 2013-1 series of bonds has a one-year expected maturity and will provide indemnity-based, collateralized catastrophe reinsurance coverage for a Florida homeowners specialty insurance company, a brokerage client of Towers Watson.

"We are pleased to see the continuing and growing commitment of insurance-linked securities (ILS) investors to the Oak Leaf program," said Michael Popkin, TWCM's co-head of ILS. "As a repeat issuer, the cedant was able to enhance its already established relationships with investors, which is critical in the private placement market."

TWCM arranged for Oak Leaf Re 2013-1 to contain three layers of the cedant's risk management program, including a reinstatement premium protection layer. Similar to previous years, another layer of Oak Leaf Re 2013-1 covered both a top layer for severity and an aggregate layer for frequency protection of the cedant's program.

"By working closely in an integrated fashion with traditional reinsurance brokerage placement, we ensure the capital market piece fits squarely within the overall risk transfer while providing cedants with the most efficient execution," said Rick Miller, TWCM's co-head of ILS.

About Towers Watson Capital Markets, Inc.

Towers Watson Capital Markets (TWCM), Inc., a wholly owned subsidiary of Towers Watson, 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

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

KEYWORDS: United States North America New York


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