Skyline Re to provide cover for Cincinnati Insurance Co

Pensions Insight

Towers Watson Capital Markets has closed on private placement catastrophe bond Skyline Re 2013-1 at $61.2m.

The deal transfers risks associated with the New Madrid earthquake on a per-occurrence basis, as well as severe convective storm losses on an aggregate basis.

Skyline Re will provide one-year, indemnity-based collateralised catastrophe reinsurance coverage for The Cincinnati Insurance Company.

Towers Watson senior vice-president Michael Popkin said: “The Towers Watson Capital Markets team was very pleased to collaborate with Cincinnati Insurance, a true market leader, on such an innovative structure.

“The breadth and depth of investor involvement in the transaction clearly demonstrates the acceptance of the private placement catastrophe bond technology that Towers Watson is employing to bring new cedants and new perils to market.”

Towers Watson senior vice-president Rick Miller said: “This deal highlights strong support for the cedant and the appeal of diversifying perils for insurance-linked securities investors. Towers Watson will continue to build its insurance-linked securities platform, and we look forward to bringing other new cedants to market in the future.”

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